Dynamic performance of three kinds of supply chains based on control theory

Based on the APIOBPCS (automatic pipeline, inventory and order based production control system), three kinds of two-echelon supply chains were established using the discrete control theory: traditional, demand information sharing and vendor managed inventory two-echelon supply chain. It developed the transfer function models of the systems. On this basis, the dynamic responses of the three systems to stepwise customer demand were analyzed by simulation. As the system parameters change, the performance of the three kinds of supply chains were compared, as well as the fluctuations of the system order, works in process and inventory. Simulation result showed that the smaller T_p was, the better the performance of supply chain was. The impact of T_i, T_w and T_a on peak value were different from the impact on settling time. Any system of three kinds of supply chain was not better than the other twos when peak value and settling time were both taken into account. Management decision-making recommendations were given finally.