Exploring the oscillatory dynamics of a forbidden returns inventory system

By Xun Wang, Stephen M. Disney, Jing Wang. 2014

47 citations recorded by the source corpus.

We present an analytical investigation of the intrinsic oscillations in a nonlinear inventory system where excessive inventory cannot be returned to the supplier. Mathematically this is captured by a non-negative constraint on the replenishment order. By studying the eigenvalues of the characteristic matrices of the system, the criteria for different types of dynamic behaviour (including convergence, periodicity, quasi-periodicity, chaos, and divergence) are derived. The upper and lower bounds of the order and inventory oscillations are found via a time-domain analysis. Our results are verified by bifurcation diagrams. We find that the closer the replenishment rule feedback parameters are to the convergence area, the milder the intrinsic oscillation of the system.

Subfields: Computer Networks and Communications, Management Information Systems, Statistical and Nonlinear Physics

View Paper: https://www.semanticscholar.org/paper/c7224810e886f5f72a9ebe54e989a7112216c89c

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In Management Information Systems

1. G. Gaalman
2. Qinyun Li
3. Stephen M. Disney
4. Susanne Hohmann
5. Xun Wang
6. Antuela A. Tako
7. Stewart Robinson

Citations in the corpus

• Avoiding the bullwhip effect using Damped Trend forecasting and the Order-Up-To replenishment policy (2014, background): “So, as a first step to dynamically designing a supply chain replenishment rule, we must first ensure that the forecasting system used within the replenishment rule is stable, Wang et al. (2013).”