A three-echelon Forrester production distribution system is used as a supply chain model for comparing various methods of improving total dynamic performance. Five different approaches are used. These are:
- "fine tuning" the existing ordering policy parameters;
- reducing system delays;
- removal of the distribution echelon;
- changing the individual echelon decision rules;
- better use of information flow throughout the supply chain.
It is shown that by better utilisation of the information flow, substantial reductions in the demand amplification can be
achieved without substantial expenditure.