Related papers: Modeling Supply Chains and Business Cycles as Unst…
Physical concepts developed to describe instabilities in traffic flows can be generalized in a way that allows one to understand the well-known instability of supply chains (the so-called ``bullwhip effect''). That is, small variations in…
Network theory is rapidly changing our understanding of complex systems, but the relevance of topological features for the dynamic behavior of metabolic networks, food webs, production systems, information networks, or cascade failures of…
The transport of products between different suppliers or production units can be described similarly to driven many-particle and traffic systems. We introduce equations for the flow of goods in supply networks and the adaptation of…
We show how to treat supply networks as physical transport problems governed by balance equations and equations for the adaptation of production speeds. Although the non-linear behaviour is different, the linearized set of coupled…
Due to delays in the adaptation of production or delivery rates, supply chains can be dynamically unstable with respect to perturbations in the consumption rate, which is known as "bull-whip effect". Here, we study several conceivable…
The progressive amplification of fluctuations in demand as the demand travels upstream the supply chains is known as the bullwhip effect. We first analytically characterize the bullwhip effect in general supply chain networks in two cases:…
Supply Chain operation is an integrated business process starting from primary supplier to end user and the process produce products, services and information. A successful chain will explore technology, lean operations, and quality…
Supply chain management and inventory control provide most exciting examples of control systems with delays. Here, Smith predictors, model-free control and new time series forecasting techniques are mixed in order to derive an efficient…
In this letter we present a stochastic dynamic model which can explain economic cycles. We show that the macroscopic description yields a complex dynamical landscape consisting of multiple stable fixed points, each corresponding to a split…
In this article we want to review the research state on the bullwhip effect in supply chains with stochastic lead times and give a contribution to quantifying the bullwhip effect. We analyze the models quantifying the bullwhip effect in…
Business cycles (a periodic change of e.g. GDP over five to ten years) exist, but a proper explanation for it is still lacking. Here we extend the well-known NAIRU (non-accelerating inflation rate of unemployment) model, resulting in a set…
The measure of the bullwhip effect, a phenomenon in which demand variability increases as one moves up the supply chain, is a major issue in Supply Chain Management. Although it is simply defined (it is the ratio of the unconditional…
I study the role of industries' position in supply chains in shaping the transmission of final demand shocks. First, I use a novel shift-share design leveraging destination-specific final demand shocks and a new measure of destination…
Demand forecasting based on empirical data is a viable approach for optimizing a supply chain. However, in this approach, a model constructed from past data occasionally becomes outdated due to long-term changes in the environment, in which…
A general theory of top-down cascades in complex networks is described which explains two similar types of perturbation amplifications in the complex networks of business supply chains (the `bullwhip effect') and ecological food webs…
Will a large economy be stable? Building on Robert May's original argument for large ecosystems, we conjecture that evolutionary and behavioural forces conspire to drive the economy towards marginal stability. We study networks of firms in…
Proceeding from the concept of rational expectations, a new dynamic model of supply and demand in a single market with one supplier, one buyer, and one kind of commodity is developed. Unlike the cob-web dynamic theories with adaptive…
We introduce a parsimonious multi-sector model of international production and use it to study the impact of a disruption in the production of some goods propagates to other goods and consumers, and how that impact depends on the goods'…
In this article we quantify the bullwhip effect (the variance amplification in replenishment orders) when demands and lead times are predicted in a simple two-stage supply chain with one supplier and one retailer. In recent research the…
In the seminal paper Information Distortion in a Supply Chain: The Bullwhip Effect (Lee, et al. 1997, hereafter referred to as LPW), order batching is regarded as one of the four sources of the bullwhip effect. LPW proved that, in all cases…