A simulation study to assess the efficacy of linear control theory models for the coordination of a two-stage customized service supply chain

In this paper, we conduct a simulation study to evaluate linear control theory models applied to the management and coordination of a two-stage customized service supply chain. Linear models that were proposed in previous research are compared against more general nonlinear models for three different levels of coordination: centralized, decentralized, and no information sharing. Using simulation and regression analysis, we show that the linear models yield results that are off by an average of six percent or less for parameter values observed in practice.