Abstract: For tradeoffing production adaptation cost and stock cost, the method of automated pipeline feedback compensated inventory and order based production control system is investigated. The supply chain production control model based on APIOBPCS is presented. Mathematics expression that can measure production adaptation cost and stock cost is introduced, and the optimi-zation model that can balances system costs is set up. Lastly, the influence of the parameters setting is analyzed in the model for the system costs performances, and the application validates the scientificalness and practicability of the fruits.

Key words: Bullwhip effect, Inventory cost, Production adaptation cost, Production control