The Effect of Batched Production on Demand Amplification
Riddalls, C.E., Bennett, S. and Tipi, N.S.
(1999)
The Effect of Batched Production on Demand Amplification.
Research Report.
ACSE Research Report 753
.
Department of Automatic Control and Systems Engineering
Abstract
Demand amplification is the tendency of small fluctuations in demand at the retailer end of the supply chain to be amplified as they are communicated down the chain. A brief review of the literature on this phenomenon is presented, concentrating particularly on the causes propounded. A continuous-time differential equation model of a production-inventory system is then proposed. The application of a novel optimal control algorithm is applied in order to simulate the rational behaviour of inventory managers. This algorithm allows us to mimic the discontinuous cost structures implied by the advantages of batched production. By simulating the response of the system to small changes in demand, the relationship between batch size and the magnitude of demand amplification is investigated.
Metadata
Item Type:
Monograph
Authors/Creators:
Riddalls, C.E.
Bennett, S.
Tipi, N.S.
Copyright, Publisher and Additional Information:
The Department of Automatic Control and Systems Engineering research reports offer a forum for the research output of the academic staff and research students of the Department at the University of Sheffield. Papers are reviewed for quality and presentation by a departmental editor. However, the contents and opinions expressed remain the responsibility of the authors. Some papers in the series may have been subsequently published elsewhere and you are advised to cite the later published version in these instances.
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