A Theory of Supply Chains

  • Carlos F. Daganzo

Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 526)

Table of contents

  1. Front Matter
    Pages I-VIII
  2. Carlos F. Daganzo
    Pages 1-8
  3. Carlos F. Daganzo
    Pages 9-24
  4. Carlos F. Daganzo
    Pages 25-33
  5. Carlos F. Daganzo
    Pages 35-54
  6. Carlos F. Daganzo
    Pages 55-78
  7. Carlos F. Daganzo
    Pages 79-97
  8. Carlos F. Daganzo
    Pages 99-102
  9. Back Matter
    Pages 103-125

About this book


This work was stimulated by a comment made by a former student (Prof. Alan Erera of Georgia Tech) in connection with an inventory stabil­ ity game he was going to play in one of his logistics classes. This was the well-known "beer-game" that is often played in business schools to illus­ trate the "bullwhip" effect in supply chains. Al had said to me that he did not have to tell his students how to reorder replacement parts from the other members of the supply chain because he knew from experience that the order sizes the players would generate as the game progressed would become chaotic anyhow. Since I had not played the beer game, his asser­ tion was intriguing to me. Why would such an unstructured game always lead to the same undesirable effect? Did it have something to do with psy­ chology? What is it that players did to generate instabilities? I posed these to other people but could not get completely satisfactory an­ questions swers. Thus, the bullwhip mystery remained, at least in my mind. Since inventory chains are "conservative" systems analogous to a traffic stream, and since traffic flow models exhibit similar effects (the instability of automobile platoons and of certain numerical methods being two nota­ ble examples)' I suspected that traffic flow theory might shed some light on the puzzle.


Conservation laws Inventory control Queuing systems Supply Chains Supply chain management optimization production

Authors and affiliations

  • Carlos F. Daganzo
    • 1
  1. 1.University of CaliforniaBerkeleyUSA

Bibliographic information

  • DOI
  • Copyright Information Springer-Verlag Berlin Heidelberg 2003
  • Publisher Name Springer, Berlin, Heidelberg
  • eBook Packages Springer Book Archive
  • Print ISBN 978-3-540-00288-8
  • Online ISBN 978-3-642-18152-8
  • Series Print ISSN 0075-8442
  • Buy this book on publisher's site
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