Dynamic analysis of an integrated VMI-push supply chain
Time-invariant systems
Linear systems
Control and optimisation of supply chains
Bullwhip
Inventory variance
VMI
2026
.Conference paper
International Federation of Automatic Control World Congress, August 23rd-27th, Busan, SOUTH KOREA.
Abstract
We study an integrated push supply chain where a manufacturer observes a distributor’s customer demand and is given authority to manage the distributor’s inventory. The manufacturer does this by forecasting the end customer demand over the whole supply chain lead time and review period. The manufacturer releases an order to the production system that arrives after the production lead time. As soon as production is completed, it is immediately pushed to the distributor, arriving after the transportation lead time. We quantify the dynamics of this system via the order and inventory variances and conduct an economic analysis.