LAUSR

Purpose The purpose of this paper is to examine the impact of applying two classical controller strategies, including two proportional (P) controllers with two feedback loops and one proportional–integral–derivative (PID) controller with one feedback loop, on the order and inventory performance within a production-inventory control system. Design/methodology/approach The simulation experiments of the dynamics behaviour of the production-inventory control system are conducted using a model based on control theory techniques. The Laplace transformation of an Order–Up–To (OUT) model is obtained using a state-space approach, and then the state-space representation is used to design and simulate a controlled model. The simulations of each model with two control configurations are tested by subjecting the system to a random retail sales pattern. The performance of inventory level is quantified by using the Integral of Absolute Error (IAE), whereas the bullwhip effect is measured by using the Variance ratio (Var). Findings The simulation results show that one PID controller with one feedback loop outperforms two P controllers with two feedback loops at reducing the bullwhip effect and regulating the inventory level. Originality/value The production-inventory control system is broken down into three components, namely: the forecasting mechanism, controller strategy and production-inventory process. A state-space approach is adopted to design and simulate the different controller strategy.