A discrete transfer function model to determine the dynamic stability of a vendor managed inventory supply chain

Disney, Stephen Michael; Towill, Denis Royston

doi:10.1080/00207540110072975

Cited by 215 publications

(131 citation statements)

References 27 publications

Supporting

Mentioning

129

Contrasting

Order By: Relevance

“…daily), and the fact that OUT policies generate regular repeating schedules of inventory replenishments, we chose to model a periodic re-ordering system. As the decision operates at fixed time intervals, we may use the z-transform as a modelling and analysis tool (see Disney and Towill (2002)). In control systems engineering, the transfer function of a system represents the relationship describing the dynamics of the system under consideration.…”

Section: Introductionmentioning

confidence: 99%

Taming the bullwhip effect whilst watching customer service in a single supply chain echelon

Disney

Farasyn

Lambrecht

et al. 2006

European Journal of Operational Research

138

111

View full text Add to dashboard Cite

Please note: Changes made as a result of publishing processes such as copy-editing, formatting and page numbers may not be reflected in this version. For the definitive version of this publication, please refer to the published source. You are advised to consult the publisher's version if you wish to cite this paper.This version is being made available in accordance with publisher policies. See http://orca.cf.ac.uk/policies.html for usage policies. Copyright and moral rights for publications made available in ORCA are retained by the copyright holders. Regressive Moving Average (ARMA) demand processes. We demonstrate that high customer service as measured by fill rate, and smooth replenishments need not increase inventory cost substantially. We observe that in some instances of the ARMA demand pattern this comes at the expense of a relatively small increase in safety stock, whilst in other instances inventory levels can actually be reduced.

show abstract

Section: Introductionmentioning

confidence: 99%

Taming the bullwhip effect whilst watching customer service in a single supply chain echelon

Disney

Farasyn

Lambrecht

et al. 2006

European Journal of Operational Research

138

111

View full text Add to dashboard Cite

show abstract

“…An obvious alternative to the matched controllers in Equation (3) would be to use unmatched, or independent, proportional controllers, as detailed in Disney and Towill (2002). Using this approach it is important to consider stability issues as the system has a much wider range of possible dynamic responses.…”

Section: The Generalized Out Replenishment Policymentioning

confidence: 99%

The value of coordination in a two-echelon supply chain

et al. 2008

View full text Add to dashboard Cite

We study a coordination scheme in a two-echelon supply chain. It involves sharing details of replenishment rules, lead times, demand patterns and tuning the replenishment rules to exploit the supply chain's cost structure. We examine four different coordination strategies: naïve operation; local optimization; global optimization; and altruistic behavior on behalf of the retailer. We assume the retailer and the manufacturer use an order-up-to policy to determine replenishment orders and the consumer's demand is a stationary independent and identically distributed random variable. We derive the variance of the retailer's order rate and inventory levels and the variance of the manufacturer's order rate and inventory levels. We initially assume that costs in the supply chain are directly proportional to these variances (and later the standard deviations) and investigate the options available to the supply chain members for minimizing costs. Our results show that if the retailer takes responsibility for supply chain cost reduction and acts altruistically by dampening his or her order variability, then the performance enhancement is robust to both the actual costs in the supply chain and to a naïve or uncooperative manufacturer. Superior performance is achievable if firms coordinate their actions and if they can find ways to reallocate the supply chain gain.

show abstract

“…The inventory proportional controller Ty modulates the recovery of the onhand inventory gap and the work in progress proportional controller Tw determines the recovery of the pipeline inventory gap 7 . A particular class of smoothing (S, R) is the matched controller case (Disney and Towill 2002, 2006, Disney et al 2004, known as Deziel and Eilon setting (Deziel and Eilon 1967). It refers to the case in which the inventory proportional controller Ty is equal to the work in progress proportional controller Tw.…”

Section: Smoothing Replenishment Rulementioning

confidence: 99%

“…Collaboration in supply chain consists in transforming suboptimal individual solutions of individual links into a comprehensive solution through sharing customer and operational information. In the bullwhip avoidance phase several authors showed how supply chain collaboration allows to decelerate the order variability in upstream direction (Chen et al 2000, Disney and Towill 2002, Chatfield et al 2004, Kim et al 2006, reduces inventory holding costs (Shang et al 2004, Kelepouris et al 2004, Byrne and Heavey 2006 and improves customer service level (Hosoda et al 2008). A smoothing replenishment rule is a periodic review (S, R) inventory control policy where the order is smoothed via proportional controllers.…”

mentioning

confidence: 99%