The analysis of capacity levels and there location is of vital importance in the design and management of supply chains as it is commonly believed that capacity constraints exacerbate poor customer service levels. The inventory and order Based Production Control System (IOBPCS), often associated with "real life" production control system, is used as "company" building blocks for the dynamic simulation of a supply chain. Various combinations of capacity levels through the supply chain are implemented at each echelon in the form of a maximum order rate that can be placed on the production facilities. A strategy of maintaining a record of unfilled orders (backlog) at the production facility highlights a number of notable dynamic characteristics over and above normal dynamics of an unconstrained IOBPCS. There is an excess inventory build up even as production order backlog is being depleted. This is simply dealt with by effectively re-engineering the total business via integrating the company's overall inventory control policy with production. The new system is used to analyze the effect of capacity constraints within a three echelon one player supply chain. The inclusion of a non-linearity into the system leads to improved dynamic performance in some designs for the step change in sales and capacity constraint levels tested, but this does not mean improved consumer levels. The strategy examined to improve dynamic performance is the holistic setting of system parameters to improve the non-linear systems. The future direction for research and ideas for further improvement are also presented, where the simulation results indicate the need to closely monitor appropriate system variables such as inventory levels, and to incorporate them within more robust decision rules.

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Date created

• 1994

Type

• Document

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• Processing documentation available at: https://wiki.albany.edu/display/SCA/Processing+Ingested+Digital+Files

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• Creative Commons BY-NC-ND Attribution-NonCommercial-NoDerivs 4.0 International

  
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fe35db792b573af835d96e6eba4759cd

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Collection

System Dynamic Society Records

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• This collection is part of the University Archives