State-space proportional-integral inventory replenishment practices for bullwhip effect investigation in supply chains

C. I. Papanagnou; P. Tzionas

doi:10.1109/IEEM.2009.5373276

State-space proportional-integral inventory replenishment practices for bullwhip effect investigation in supply chains

C. I. Papanagnou
, P. Tzionas

School of Infrastructure and Sustainable Engineering

Alexander Technological Institute of Thessaloniki

Research output: Chapter in Book/Published conference output › Conference publication

Abstract

Inventory replenishment practices play significant role in supply chain networks and they are strongly associated with overall supply chain performance. This paper presents a state-space model of a stochastic series multi-node supply chain, controlled via local proportional-integral inventory replenishment policies. The model is triggered by identically distributed and uncorrelated random variables which represent uncertain customer demand. The proposed model is analyzed under stationarity, provided that control parameters belong to a certain range which is clearly specified. Simple recursive techniques are developed to calculate explicitly the associated covariance matrix in closed parametric form. This allows to analyze the effect of control parameters in the inventory practices on the bullwhip effect. It is shown that proportional-integral replenishment practices can be applied to explain in qualitative terms the main performance and stability properties of supply chains.

Original language	English
Title of host publication	Proceedings of IEEM 2009 - IEEE International Conference on Industrial Engineering and Engineering Management
Pages	558-562
Number of pages	5
DOIs	https://doi.org/10.1109/IEEM.2009.5373276
Publication status	Published - 8 Jan 2010
Event	IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2009 - Hong Kong, China Duration: 8 Dec 2009 → 11 Dec 2009

Publication series

Name	IEEM Proceedings
Publisher	IEEE

Conference

Conference	IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2009
Country/Territory	China
City	Hong Kong
Period	8/12/09 → 11/12/09

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 9 Industry, Innovation, and Infrastructure

Keywords

Bullwhip effect
Control theory
Covariance matrix
Inventory control
Supply chain management

Access to Document

10.1109/IEEM.2009.5373276

Cite this

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title = "State-space proportional-integral inventory replenishment practices for bullwhip effect investigation in supply chains",

abstract = "Inventory replenishment practices play significant role in supply chain networks and they are strongly associated with overall supply chain performance. This paper presents a state-space model of a stochastic series multi-node supply chain, controlled via local proportional-integral inventory replenishment policies. The model is triggered by identically distributed and uncorrelated random variables which represent uncertain customer demand. The proposed model is analyzed under stationarity, provided that control parameters belong to a certain range which is clearly specified. Simple recursive techniques are developed to calculate explicitly the associated covariance matrix in closed parametric form. This allows to analyze the effect of control parameters in the inventory practices on the bullwhip effect. It is shown that proportional-integral replenishment practices can be applied to explain in qualitative terms the main performance and stability properties of supply chains.",

keywords = "Bullwhip effect, Control theory, Covariance matrix, Inventory control, Supply chain management",

author = "Papanagnou, \{C. I.\} and P. Tzionas",

year = "2010",

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doi = "10.1109/IEEM.2009.5373276",

language = "English",

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series = "IEEM Proceedings",

publisher = "IEEE",

pages = "558--562",

booktitle = "Proceedings of IEEM 2009 - IEEE International Conference on Industrial Engineering and Engineering Management",

note = "IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2009 ; Conference date: 08-12-2009 Through 11-12-2009",

}

Papanagnou, CI & Tzionas, P 2010, State-space proportional-integral inventory replenishment practices for bullwhip effect investigation in supply chains. in Proceedings of IEEM 2009 - IEEE International Conference on Industrial Engineering and Engineering Management., 5373276, IEEM Proceedings, pp. 558-562, IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2009, Hong Kong, China, 8/12/09. https://doi.org/10.1109/IEEM.2009.5373276

State-space proportional-integral inventory replenishment practices for bullwhip effect investigation in supply chains. / Papanagnou, C. I.; Tzionas, P.
Proceedings of IEEM 2009 - IEEE International Conference on Industrial Engineering and Engineering Management. 2010. p. 558-562 5373276 (IEEM Proceedings).

Research output: Chapter in Book/Published conference output › Conference publication

TY - GEN

T1 - State-space proportional-integral inventory replenishment practices for bullwhip effect investigation in supply chains

AU - Papanagnou, C. I.

AU - Tzionas, P.

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N2 - Inventory replenishment practices play significant role in supply chain networks and they are strongly associated with overall supply chain performance. This paper presents a state-space model of a stochastic series multi-node supply chain, controlled via local proportional-integral inventory replenishment policies. The model is triggered by identically distributed and uncorrelated random variables which represent uncertain customer demand. The proposed model is analyzed under stationarity, provided that control parameters belong to a certain range which is clearly specified. Simple recursive techniques are developed to calculate explicitly the associated covariance matrix in closed parametric form. This allows to analyze the effect of control parameters in the inventory practices on the bullwhip effect. It is shown that proportional-integral replenishment practices can be applied to explain in qualitative terms the main performance and stability properties of supply chains.

AB - Inventory replenishment practices play significant role in supply chain networks and they are strongly associated with overall supply chain performance. This paper presents a state-space model of a stochastic series multi-node supply chain, controlled via local proportional-integral inventory replenishment policies. The model is triggered by identically distributed and uncorrelated random variables which represent uncertain customer demand. The proposed model is analyzed under stationarity, provided that control parameters belong to a certain range which is clearly specified. Simple recursive techniques are developed to calculate explicitly the associated covariance matrix in closed parametric form. This allows to analyze the effect of control parameters in the inventory practices on the bullwhip effect. It is shown that proportional-integral replenishment practices can be applied to explain in qualitative terms the main performance and stability properties of supply chains.

KW - Bullwhip effect

KW - Control theory

KW - Covariance matrix

KW - Inventory control

KW - Supply chain management

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BT - Proceedings of IEEM 2009 - IEEE International Conference on Industrial Engineering and Engineering Management

T2 - IEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2009

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ER -

State-space proportional-integral inventory replenishment practices for bullwhip effect investigation in supply chains

Abstract

Publication series

Conference

UN SDGs

Keywords

Access to Document

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