This paper shows the impact of using the net present value (NPV) on parameter selection in the ordering policy of a production planning and control system. Using a well understood and documented model, the net present value is used as an objective function to determine the discounted future...

Reviews the dynamic operation of supply chains and reaches some simple conclusions for reducing demand amplification, which consequently attenuates swings in both production rates and stock levels. The results are based on one particular supply chain, for which the use of systems simplification...