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Application of Dynamic Analysis in a Centralised Supply Chain
Abstract
This chapter presents dynamic analysis of a model of a centralised supply chain. The research was conducted within the manufacturing sector and involved the breathing equipment manufacturer Draeger Safety, UK A simplified model of the Draeger Safety, UK centralised supply chain is developed and validated. Simulation and analysis are performed using System Dynamics, control theory, nonlinear dynamic and chaos theory. The findings suggest that destructive oscillations of inventory could be generated by internal decision making practices. Bifurcation diagram is plotted to indicate the bifurcation status of the model with different internal decision policies. A management microworlds is developed for managers to experiment with different decision scenarios and learn how the supply chain performs.
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