Threshold Rule and Scaling Behavior in a Multi-Agent Supply Chain

Valerio Lacagnina () and Davide Provenzano ()
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Valerio Lacagnina: University of Palermo
Davide Provenzano: University of Palermo

A chapter in Progress in Artificial Economics, 2010, pp 139-150 from Springer

Abstract: Abstract In this paper an agent-based model of self organized criticality is developed in a network economy characterized by lead time and a threshold behavior of firms. Instead of considering the aggregate production of the economy as a whole, we focus on both the propagation and amplification effects of a demand shock in the sectorial productions of a multi-agent supply chain. We study a static network structure representing a relation of firms in a lower-upper stream in an industrial organization. In our model, the individual (R, nQ) policies play an important role in generating a propagation effect across the different layers of the economy, and the propagation turns into the large fluctuations and amplifications of sectorial productions.

Keywords: Supply Chain; Scaling Behavior; Production Network; Bullwhip Effect; Reorder Point (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:spr:lnechp:978-3-642-13947-5_12

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DOI: 10.1007/978-3-642-13947-5_12

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