Dynamics analysis of a production-inventory control system with two pipelines feedback
ISSN: 0368-492X
Article publication date: 29 November 2017
Issue publication date: 29 November 2017
Abstract
Purpose
The purpose of this study is to propose a new dynamic model of a production-inventory control system. The objective of the new model is to maximise the flexibility of the system so that it can be used by decision makers to design inventory systems that adopt various strategies that provide a balance between reducing the bullwhip effect and improving the responsiveness of inventory performance.
Design/methodology/approach
The proposed production-inventory control system is modelled and analysed via control theory and simulations. The production-inventory feedback control system is modelled through continuous time differential equations. The simulation experiments design is conducted by using the state-space model of the system. The Automatic Pipeline Inventory and Order-Based Production Control System (APIOBPCS) model is used as a benchmark production-inventory control system.
Findings
The results showed that the Two Automatic Pipelines, Inventory and Order-Based Production Control System (2APIOBPCS) model outperforms APIOBPCS in terms of reducing the bullwhip effect. However, the 2APIOBPCS model has a negative impact on Customer Service Level. Therefore, with careful parameter setting, it is possible to design control decisions to be suitably responsive while generating smooth order patterns and obtain the best trade-off of the two objectives.
Research limitations/implications
This research is limited to the dynamics of single-echelon production-inventory control systems with zero desired inventory level.
Originality/value
This present model is an extension and improvement to Towill’s (1982) and John et al.’s (1994) work, since it presents a new dynamic model of a production-inventory control system which utilises an additional flow of information to improve the efficiency of order rate decisions.
Keywords
Citation
AL-Khazraji, H., Cole, C. and Guo, W. (2017), "Dynamics analysis of a production-inventory control system with two pipelines feedback", Kybernetes, Vol. 46 No. 10, pp. 1632-1653. https://doi.org/10.1108/K-04-2017-0122
Publisher
:Emerald Publishing Limited
Copyright © 2017, Emerald Publishing Limited