Authors: Carlos Andres Garcia,Pedro Balaguer, Ramón Vilanova
An important phenomenon in supply chain management, know as the bullwhip effect, suggests that demand variability increases as one moves in the supply chain. In this paper, a discrete time model for the beer game is derived by using the well-known z-transform. The system can be viewed as linear discrete MIMO system with lead times and integrators. We analyze the impact of P and PI controllers as replenishment policies. We also analyze the stability of the system using the characteristic equation and Jury criterion. Finally, a comparison between our proposed control-based strategy and other existing replenishment policies is performed. After the system is modelled one obtains a transfer function of one chain echelon introducing an ordering strategy based on controller design principles. In this work P and PI control structures are proposed and tuned accordingly, to eliminate the bullwhip effect.