A STATE-SPACE BASED STUDY OF STABILITY, BULLWHIP EFFECT AND TOTAL COSTS IN TWO-STAGE SUPPLY CHAINS

摘要

The main focus of this work is to apply the state-space method used in modern control theory to study the stability/instability of a two-stage supply chain controlled by the order policy called Automatic Pipeline, Variable Inventory and Order Based Production Control System (APVIOBPCS). Because product returns are not permitted, the supply chain may turn out to be an autonomous switched system according to the retailer's order pattern. The stability of each subsystem is examined by analytic method and numerical analysis. The relationship between the supply chain stability/instability and bullwhip effect at different values of input parameters is then examined through simulation. Finally, the impacts of the decision variables on the relationship between the supply chain stability and the chain-wide total cost are analyzed, and the implications for demand forecasting, inventory control, and supply process for improving the supply chain operations are identified.