Systematical Analysis And Control Inventory Fluctuation In Supply Chain

Recently supply chain management become more and more popular, it is integration management mode that surround core enterprise, which is functional network structure that is compose with supplier, manufacturer, wholesaler and consumer by information flow, material flow and financial flow. Supply chain management require every enterprise in supply chain not only pay attention to optimize themselves production and inventory but also care to optimize production and inventory of all supply chain. Because there is a lot of subjective and objective reason in the course of enterprise producing and controlling inventory in real supply chain, it is obvious problem that supply chain inventory fluctuations continually enlarge upstream supply chain, this problem is observed from the phenomenon that the change of final consumer's demand quantity make production or order quantity fluctuation of upstream enterprise vary more and more acute with order please to upstream enterprise, which increase production and storage adaptation costs as well as increasing overstock cost and out of stock cost of upstream enterprise. This problem affects badly efficiency and effect of whole supply chain and every enterprise in supply chain operating. Thus, how to systematically differentiate and analyses and control inventory fluctuation of supply chain is the key problem that reduce supply chain inventory variance amplification.This paper systematically research supply chain inventory fluctuation problem. the subjective and objective factors that affect inventory variance amplification is found by qualitative analysis and quantitative analysis order process of enterprise in single-echelon supply chain, and how to this related factors affect inventory variance amplification. How to inventory variance amplification transforms upstream supply chain and how to quantify extent of inventory variance amplification is shown by analyzing order process of multi-echelon supply chain and the way how to control inventory variance amplification is found according to the factor of inventory variance amplification.In the research for single-echelon supply chain, discrete time domain model of order process is performed with Z-transform, and transfer function of order process. The factor that affects inventory variance amplification is shown by frequency response analysis of transfer function. The extent of inventory variance amplification is quantified by ratio of order amplitude and demand amplitude or power spectrum. In analysis for order process, paper focus on analyses order process with demand forecast and demand information process.In the research for multi-echelon supply chain, how to inventory variance amplification pass from one to other upstream and what extent of inventory variance amplification is understand by analysis for order process with demand forecast and demand information process.In the research for how to information share reducing inventory variance amplification, quantificationally demonstrate the natural that information share reduce inventory variance amplification by analysis for order process of multi-echelon supply chain under condition of information share, and also demonstrate what extent information share can improve inventory variance amplification upstream supply chain by comparing order quantity variance amplification as final consumer's demand variance in traditional supply chain with information share supply chain.In the research for controlling inventory variance amplification upstream supply chain, proportional parameter control of actual inventory discrepancy and on-order inventory discrepancy is applied in closed-loop control order process of single-echelon, multi-echelon and information share supply chain, which can make every enterprise in supply chain is able to correctly identify and track genuine changes in demand and when the consumer's demand variance frequency is very low and make them detect and reject rogue variations in demand when the consumer's demand variance frequency, so that inventory variance amplification is efficiently restrained.Because systematically differentiate and analyses and control inventory fluctuation of supply chain is a cross-subject issue, the paper makes great efforts to study it from theory and method in various research fields. For example the reason that inventory fluctuation amplify is analyzed from the view of system dynamics, the discrete time domain function transform into complex number domain function by Z-transform, transfer function in control engineering domain is applied to denoted the relationship between order quantity output and demand quantity input and proportional parameter control in control engineering is utilized to reduce inventory variance amplification, and quantificationally demonstrate the extent of inventory fluctuation, how to pass upstream supply chain and what result of controlling inventory fluctuation with the approach of simulation.