The Impact of Pipeline Control on Supply Chain Dynamics

The use of pipeline feedback to ensure good control of material flow systems has been developed over the years on a pragmatic basis. More recently, the mechanism by which the improved control is achieved has been the subject of theoretical analysis. In turn, this has led to recommendations for good parameter settings which may be used with confidence when applied to a particular generic decision support system (DDS) known as the “to make” model. One consequence of utilizing pipeline feedback is the enhanced damping capability of this system. In our experience, many supply chains may be represented by the coupling together of a series of To-Make models. In this paper, we show that the use of supply chain feedback within each echelon greatly reduces the order amplification as it proceeds upstream from the market place. Using as an example a model of the Beer Game Supply chain, it is concluded that demand amplification is readily reduced by a factor of 2:1.