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Eliminating drift in inventory and order based production control systems

Disney, Stephen Michael and Towill, Denis Royston 2005. Eliminating drift in inventory and order based production control systems. International Journal of Production Economics 93-94 , pp. 331-344. 10.1016/j.ijpe.2004.06.031

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An Inventory and Order Based Production Control System lies at the heart of many commercial and bespoke ordering systems based on periodic review of stock and production targets. This simple and elegant control system works well, even when dealing with scenarios in which there are many competing value streams. However, such “interferences” inevitably cause some uncertainty in pipeline delivery times. We show via linear z-transform analysis that the consequences may include the possibility of inventory drift and instability. In this paper we establish the stability boundaries for such systems, and demonstrate an innovative method of eliminating inventory drift due to lead-time effect. This new principle is confirmed by simulation results.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Centre for Advanced Manufacturing Systems At Cardiff (CAMSAC)
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HE Transportation and Communications
Uncontrolled Keywords: Order-up-to policy; Lead-times; Work-in-progress; Stability; Z-transforms; Dynamics
Publisher: Elsevier
ISSN: 0925-5273
Date of First Compliant Deposit: 30 March 2016
Last Modified: 10 Mar 2020 13:48

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