Papanagnou, Christos and Agca, Ahmet Onur (2025). Reverse bullwhip effect under the rationing game: A state-space approach. IFAC-PapersOnLine, 59 (10), pp. 2581-2586.
Abstract
Driven by the challenges posed by supply chain disruptions when demand surpasses supply, this study introduces a novel stochastic state-space approach to examine how the rationing game influences the reverse bullwhip effect and inventory fluctuations. The rationing mechanism is represented through a proportional controller, which regulates the allocation of goods to downstream supply chain participants. The analysis focuses on a three-node supply chain comprising a single distributor supplying two retailers. Each retailer manages its inventory using a base stock policy while responding to stochastic customer demand patterns. The dynamic behaviour of the supply chain is captured through a closed-form covariance matrix, which is formulated in terms of the proportional control parameters and the proportion of the distributor’s inventory allocated to retailers. By analysing the model under stationary conditions, the study explores how distributor inventory variability and correlated demand patterns impact upstream demand amplification and broader instability phenomena within supply chains.
Publication DOI: | https://doi.org/10.1016/j.ifacol.2025.09.434 |
---|---|
Divisions: | College of Engineering & Physical Sciences > School of Infrastructure and Sustainable Engineering College of Engineering & Physical Sciences College of Engineering & Physical Sciences > School of Infrastructure and Sustainable Engineering > Engineering Systems and Supply Chain Management Aston University (General) |
Additional Information: | Copyright © The Authors. This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0/) |
Publication ISSN: | 2405-8963 |
Last Modified: | 08 Oct 2025 12:03 |
Date Deposited: | 08 Oct 2025 12:03 |
Full Text Link: | |
Related URLs: |
https://www.sci ... 1978?via%3Dihub
(Publisher URL) |
PURE Output Type: | Article |
Published Date: | 2025-09-27 |
Published Online Date: | 2025-09-27 |
Accepted Date: | 2025-02-10 |
Authors: |
Papanagnou, Christos
(![]() Agca, Ahmet Onur ( ![]() |