Dynamic Characteristics of "γ-type" Ordering System for Two-Stage Production and Inventory Systems

Abstract

This paper deals with the problem of developing an effective push-type ordering system which can the amplifications of production ordering and inventory levels of two-stage production and inventory systems. The system which we call "γ-type" ordering system proposed in this paper can control the weight of feedback information from each stage. As a result, the ordering system can prevent any increase of the amplifications in the production ordering and inventory levels occurring at every stage leading up to the final-product stage.