Stochastic state space in supply chains under AR(1) demand profiles
by Christos I. Papanagnou, George D. Halikias
International Journal of Mathematics in Operational Research (IJMOR), Vol. 3, No. 5, 2011

Abstract: This work aims to present a stochastic state-space model for a three-node series supply chain under first-order Autoregressive (AR) customer demand profiles. It is assumed that inventory replenishment in each node follows continuous (proportional) base stock policies via specific control parameters. Dynamic properties of the supply chain model are encapsulated in closed-form covariance matrix, i.e., as an explicit function of the control parameters and autoregression coefficient. The model is analysed under stationary conditions, allowing to analyse the effect of inventory-replenishment policies and correlated demand profiles on the 'bullwhip effect' (demand amplification) and related instability phenomena in supply chains.

Online publication date: Thu, 12-Feb-2015

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Mathematics in Operational Research (IJMOR):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com