Effect of information update frequency on the stability of production-inventory control systems

Production ordering and inventory dynamics in a manufacturing system are analyzed using function transformation techniques (z-transform) and their conditions for stability are examined. A generic model which captures the mixing and variability in the production process is developed. Variation in the stability of the system operating under sufficient inventory coverage and under limited inventory coverage is highlighted. The effects of the frequency of information update on stability are then examined by relating the update frequency to the sampling interval of the underlying difference equations. System dynamics simulations are used to demonstrate the stable or unstable behaviour of the production-inventory system.