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

Table 4

Parameter settings and results from optimization runs.

Optimization results	Optimization 1-minimize unfilled orders of retailer alone			Optimization 2-minimize unfilled orders of both SC partners			Optimization 3-minimize unfilled orders and Finished Goods stocking of both SC partners—(equal weight for all components)
Parameters	Safety stocks	Smoothing factor alpha/S1	Unfilled orders	Safety stocks	Smoothing factor alpha/S1	Unfilled orders	Safety stocks	Smoothing factor alpha/S1	Unfilled orders
Random normal optimized-supplier	1.50	0.00	0	1.50	0.02	0	1.21	0.00	0
Random normal optimized-retailer	1.50	0.06	0	1.20	0.15	0	1.18	0.00	0
Random uniform optimized-supplier	1.50	1.00	0	1.38	1.00	0	1.35	0.00	0
Random uniform optimized-retailer	1.50	0.12	0	1.28	0.12	0	1.26	0.00	18
Random upward optimized-supplier	1.50	1.00	234	1.50	1.00	0	1.50	0.60	0
Random upward optimized-retailer	1.50	1.00	0	1.31	0.11	0	1.31	0.09	1
Random downward optimized-supplier	1.50	0.25	0	1.50	0.05	0	1.22	0.42	0
Random downward optimized-retailer	1.50	0.00	0	1.29	0.00	0	1.22	0.09	2
Spiked optimized-supplier	1.50	0.04	0	1.50	0.25	0	1.00	0.25	0
Spiked optimized-retailer	1.25	0.06	0	1.00	0.00	300	1.00	0.00	300
Dipped optimized-supplier	1.50	0.00	0	1.50	0.00	0	1.02	0.00	0
Dipped optimized-retailer	1.25	0.00	0	1.25	0.00	0	1.01	0.00	0

In all optimization scenarios, FWW: flexible work week switch is turned on. IV: information visbility switch is also turned on.