Inventory and Production Dynamics in a Discrete-Time Vendor-Managed Inventory Supply Chain System
This paper presents some analytical results on production and order dynamics in the context of a discrete-time VMI supply chain system composed of one retailer and one manufacturer. We firstly derive the lower bound and upper bound on the range of inventory fluctuations for the retailer under unknow...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Wiley
2018-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2018/6091946 |
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| _version_ | 1832548672241401856 |
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| author | Yongchang Wei Fangyu Chen Hongwei Wang |
| author_facet | Yongchang Wei Fangyu Chen Hongwei Wang |
| author_sort | Yongchang Wei |
| collection | DOAJ |
| description | This paper presents some analytical results on production and order dynamics in the context of a discrete-time VMI supply chain system composed of one retailer and one manufacturer. We firstly derive the lower bound and upper bound on the range of inventory fluctuations for the retailer under unknown demand. We prove that the production fluctuations can be interestingly smoothed and stabilized independent of the delivery frequency of the manufacturer used to satisfy the retailer’s demand, even if the retailer subsystem is unstable. The sufficient and necessary stability condition for the whole supply chain system is obtained. To further explore the production fluctuation problem, the bullwhip effect under unknown demand is explored based on a transfer function model with the purpose of disclosing the influences of parameters on production fluctuations. Finally, simulation experiments are used to validate the theoretical results with respect to inventory and production fluctuations. |
| format | Article |
| id | doaj-art-47cc017f43504d8b80345e1ac74a3b8e |
| institution | Kabale University |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2018-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-47cc017f43504d8b80345e1ac74a3b8e2025-02-03T06:13:23ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2018-01-01201810.1155/2018/60919466091946Inventory and Production Dynamics in a Discrete-Time Vendor-Managed Inventory Supply Chain SystemYongchang Wei0Fangyu Chen1Hongwei Wang2School of Business Administration, Zhongnan University of Economics and Law, Wuhan, ChinaSchool of Business Administration, Zhongnan University of Economics and Law, Wuhan, ChinaSchool of Management, Huazhong University of Science and Technology, Wuhan, ChinaThis paper presents some analytical results on production and order dynamics in the context of a discrete-time VMI supply chain system composed of one retailer and one manufacturer. We firstly derive the lower bound and upper bound on the range of inventory fluctuations for the retailer under unknown demand. We prove that the production fluctuations can be interestingly smoothed and stabilized independent of the delivery frequency of the manufacturer used to satisfy the retailer’s demand, even if the retailer subsystem is unstable. The sufficient and necessary stability condition for the whole supply chain system is obtained. To further explore the production fluctuation problem, the bullwhip effect under unknown demand is explored based on a transfer function model with the purpose of disclosing the influences of parameters on production fluctuations. Finally, simulation experiments are used to validate the theoretical results with respect to inventory and production fluctuations.http://dx.doi.org/10.1155/2018/6091946 |
| spellingShingle | Yongchang Wei Fangyu Chen Hongwei Wang Inventory and Production Dynamics in a Discrete-Time Vendor-Managed Inventory Supply Chain System Discrete Dynamics in Nature and Society |
| title | Inventory and Production Dynamics in a Discrete-Time Vendor-Managed Inventory Supply Chain System |
| title_full | Inventory and Production Dynamics in a Discrete-Time Vendor-Managed Inventory Supply Chain System |
| title_fullStr | Inventory and Production Dynamics in a Discrete-Time Vendor-Managed Inventory Supply Chain System |
| title_full_unstemmed | Inventory and Production Dynamics in a Discrete-Time Vendor-Managed Inventory Supply Chain System |
| title_short | Inventory and Production Dynamics in a Discrete-Time Vendor-Managed Inventory Supply Chain System |
| title_sort | inventory and production dynamics in a discrete time vendor managed inventory supply chain system |
| url | http://dx.doi.org/10.1155/2018/6091946 |
| work_keys_str_mv | AT yongchangwei inventoryandproductiondynamicsinadiscretetimevendormanagedinventorysupplychainsystem AT fangyuchen inventoryandproductiondynamicsinadiscretetimevendormanagedinventorysupplychainsystem AT hongweiwang inventoryandproductiondynamicsinadiscretetimevendormanagedinventorysupplychainsystem |