Control Theory Concepts Applied to Retail Supply Chain: A System Dynamics Modeling Environment Study

Table 1

Initial parameter settings.

Parameter	Unit	Retailer	Supplier
Simulation time	Weeks	100	100
Customer orders at start	Units/week	1000	N/A
Orders from retailer	Units/week	N/A	1000
Smoothing factor alpha	Dimensionless	0.25	0.25
Minimum order filling time	Weeks	1	1
Safety stock level	Weeks	1	1
FG inventory adjustment time	Weeks	1	4
Production cycle time	Weeks		4
WIP adjustment time	Weeks		4
Standard workweek	Hours	40	40
FWW: flexible work week—max (schedule pressure effect tabS1)	Hours	50	50
FWW: flexible work week—min (schedule pressure effect tabS1)	Hours	30	30
Productivity normalS1	Units/(hour*person)		0.5
WIP	Units		4000
Finished goods inventory, initial	Units	1000	1000
Workforce view
Workforce adjustment timeS1	Weeks		5
Communication timeS1	Weeks	1	1
Hiring time normalS1	Weeks	N/A	1
Quit rate normalS1	dmnl/week	N/A	0.01
WorkforceS1	Person	Not relevant	50