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System dynamics modelling, analysis and design of assemble-to-order supply chains

Lin, Junyi 2018. System dynamics modelling, analysis and design of assemble-to-order supply chains. PhD Thesis, Cardiff University.
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Abstract

Background and purpose: The assemble-to-order supply chains (ATO) is commonly-adopted in personal computer (PC) and semiconductor industries. However, the system dynamics of PC and semiconductor ATO systems, one of the main sources of disruption, is not well-explored. Thereby this thesis aims to 1) develop a nonlinear system dynamics model to represent the real-world PC and semiconductor ATO systems, 2) explore the underlying mechanisms of ATO system dynamics in the nonlinear environment and 3) assess the delivery lead times dynamics, along with bullwhip and inventory variance. Design/methods: Regarding the semiconductor industry, the Intel nonlinear ATO system dynamics model, is used as a base framework to study the underlying causes of system dynamics. The well-established Inventory and Order based Production Control System archetypes, or the IOBPCS family, are used as the benchmark models. Also, the IOBPCS family is used to develop the PC ATO system dynamics model. Control engineering theory, including linear (time and frequency response techniques) and nonlinear control (describing function, small perturbation theory) approaches, are exploited in the dynamic analysis. Furthermore, system dynamics simulation is undertaken for cross-checking results and experimentation. Findings: The ATO system can be modelled as a pull (order driven) and a push (forecasting driven) systems connected by the customer order decoupling point (CODP). A framework for dynamic performance assessment termed as the ‘performance triangle’, including customer order delivery lead times, CODP inventory and bullwhip (capacity variance), is developed. The dynamic analysis shows that, depending on the availability of CODP Abstract iii inventory, the hybrid ATO system state can be switched to the pure push state, creating poor delivery lead times dynamics and stock-out issues. Limitations: This study is limited to the analysis of a closely-coupled two-echelon ATO systems in PC and semiconductor industries. Also, the optimization of control policies is not considered. Practical implications: Maintaining a truly ATO system state is important for both customer service level and low supply chain dynamics cost, although the trade-off control design between CODP inventory and capacity variance should be considered. Demand characteristics, including variance and mean, play an important role in triggering the nonlinearities present in the ATO system, leading to significant change in the average level of inventory and the overall transient performance. Originality / value: This study developed system dynamics models of the ATO system and explored its dynamic performance within the context of PC and semiconductor industries. The main nonlinearities present in the ATO system, including capacity, non-negative order and CODP inventory constraints, are investigated. Furthermore, a methodological contribution has been provided, including the simplification of the high-order nonlinear model and the linearization of nonlinearities present in the ATO system, enhancing the understanding of the system dynamics and actual transient responses. The ‘performance triangle’ analysis is also a significant contribution as past analytical studies have neglected customer order lead time variance as an inclusive metric.

Item Type: Thesis (PhD)
Date Type: Completion
Status: Unpublished
Schools: Business (Including Economics)
Uncontrolled Keywords: System dynamics, Assemble-to-order supply chain, Control theory, Nonlinear control, Bullwhip effect, Supply chain management, The IOBPCS family
Date of First Compliant Deposit: 11 April 2019
Date of Acceptance: 15 March 2019
Last Modified: 11 Apr 2019 15:43
URI: http://orca-mwe.cf.ac.uk/id/eprint/121627

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