feat(example): add supply-chain-vsm composition demo (S3.5)
Demonstrates infospace composition: the Wealth of Nations infospace is used as a discipline, applying Smith's economic framework as a lens to analyse modern supply chain management concepts. New example: examples/supply-chain-vsm/ - infospace.yaml binding WoN as discipline (../infospace-with-history) - 3 source documents: coordination mechanisms, capital & inventory, market structure (~400 words each, original content) - supply-chain-entity-schema-v1.0.md with WoN Concept required section - won-mapping-schema-v1.0.md with Conceptual Continuity rating - artifacts/won-reference/core-entities.md — 12 curated WoN entities for injection as discipline context - 8 hand-crafted entity files demonstrating LLM output format - 3 mapping files with full rationale and VSM inheritance chains - Viable: YES (5/5 thresholds) Key mappings demonstrated: Demand Signal → Effectual Demand (Strong, S2) Vendor-Managed Inventory → Division of Labour (Strong, S1/S2) Just-in-Time Inventory → Circulating Capital (Strong, S1/S3) Bullwhip Effect → Natural Price (Moderate, S2) Platform Intermediary → Merchant Capital (Strong, S2/S4) Monopsony Power → Combination of Masters (Strong, S3*) Platform fix: entity_parser.py now recognises ## Supply Chain Domain as a domain alias for ## Economic Domain, enabling composed infospaces to use their own domain section name. Tutorial §13 rewritten with real commands, real output, and the full mapping table from the demo. Co-Authored-By: Claude Sonnet 4.6 <noreply@anthropic.com>
This commit is contained in:
35
examples/supply-chain-vsm/output/entities/bullwhip-effect.md
Normal file
35
examples/supply-chain-vsm/output/entities/bullwhip-effect.md
Normal file
@@ -0,0 +1,35 @@
|
||||
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-22 source=coordination-mechanisms -->
|
||||
|
||||
# Bullwhip Effect
|
||||
|
||||
## Definition
|
||||
|
||||
The amplification of demand variability as signals travel upstream in a
|
||||
supply chain, such that small fluctuations at the retail level produce
|
||||
progressively larger swings in orders at distributor, manufacturer, and
|
||||
supplier levels. The amplification arises from batching, safety stock
|
||||
additions at each tier, and the use of lagged signals rather than
|
||||
real-time demand data. The result is a chain that oscillates between glut
|
||||
and shortage even when end-consumer demand is relatively stable.
|
||||
|
||||
## Source
|
||||
|
||||
Coordination Mechanisms in Modern Supply Chains, §The Bullwhip Effect
|
||||
|
||||
## Supply Chain Domain
|
||||
|
||||
Coordination
|
||||
|
||||
## VSM Assignment
|
||||
|
||||
S2 — The bullwhip effect is a failure of S2 (the anti-oscillation
|
||||
coordination layer). A functioning S2 dampens variance; the bullwhip
|
||||
effect describes what happens when S2 is absent or degraded.
|
||||
|
||||
## WoN Concept
|
||||
|
||||
Natural Price as Central Price — Smith describes market price as oscillating
|
||||
around natural price as a centre of gravity. The bullwhip effect is an
|
||||
analogous oscillation: orders oscillate around actual demand rather than
|
||||
converging to it, because the information infrastructure required for
|
||||
convergence (transparent, real-time demand signals) is missing.
|
||||
39
examples/supply-chain-vsm/output/entities/demand-signal.md
Normal file
39
examples/supply-chain-vsm/output/entities/demand-signal.md
Normal file
@@ -0,0 +1,39 @@
|
||||
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-22 source=coordination-mechanisms -->
|
||||
|
||||
# Demand Signal
|
||||
|
||||
## Definition
|
||||
|
||||
Information about consumer purchasing activity that propagates upstream
|
||||
through a supply chain to inform supplier replenishment and production
|
||||
decisions. A demand signal may be a point-of-sale data feed, a retailer's
|
||||
replenishment order, or a forecast. Signal quality — latency, accuracy,
|
||||
and granularity — determines how well upstream production can be
|
||||
synchronised with downstream consumption.
|
||||
|
||||
## Source
|
||||
|
||||
Coordination Mechanisms in Modern Supply Chains, §Demand Signals and
|
||||
Information Flow
|
||||
|
||||
## Supply Chain Domain
|
||||
|
||||
Coordination
|
||||
|
||||
## VSM Assignment
|
||||
|
||||
S2 — The demand signal is the primary coordination variable of the supply
|
||||
chain, analogous to the price signal in a market. It tells each upstream
|
||||
node what the downstream node requires, enabling synchronised response
|
||||
without central direction.
|
||||
|
||||
## WoN Concept
|
||||
|
||||
Effectual Demand — Smith's effectual demand — the demand of those willing
|
||||
and able to pay — is the signal that calls productive resources into action.
|
||||
The modern demand signal is effectual demand made explicit and machine-readable:
|
||||
instead of inferring demand from price movements, modern supply chains
|
||||
transmit demand data directly. Both serve the same coordination function
|
||||
(telling producers how much to produce), but where Smith's effectual demand
|
||||
works through price as a lagged, aggregated signal, the modern demand signal
|
||||
aims for real-time, granular transmission.
|
||||
@@ -0,0 +1,36 @@
|
||||
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-22 source=capital-and-inventory -->
|
||||
|
||||
# Just-in-Time Inventory
|
||||
|
||||
## Definition
|
||||
|
||||
A capital management practice in which goods are received from suppliers
|
||||
only as they are needed for production or fulfilment, minimising the
|
||||
stock held at any moment. JIT eliminates inventory as a buffer by
|
||||
replacing it with reliable process coordination — synchronised production
|
||||
schedules, short lead times, and high-frequency deliveries. The capital
|
||||
released from inventory reduction is the primary financial justification.
|
||||
|
||||
## Source
|
||||
|
||||
Capital and Inventory in Supply Chain Management, §Just-in-Time Inventory
|
||||
|
||||
## Supply Chain Domain
|
||||
|
||||
Capital Management
|
||||
|
||||
## VSM Assignment
|
||||
|
||||
S3 — JIT is a management-level decision about how to deploy circulating
|
||||
capital. It sets the policy for inventory levels (near-zero) and enforces
|
||||
that policy through supplier relationship design and production scheduling.
|
||||
|
||||
## WoN Concept
|
||||
|
||||
Circulating Capital — Smith distinguishes circulating capital (consumed
|
||||
and replaced each productive cycle) from fixed capital (durable). JIT is
|
||||
an explicit strategy to minimise the circulating capital locked in
|
||||
inventory at any moment, accelerating the velocity of the capital cycle.
|
||||
The faster capital circulates, the greater the productive output per unit
|
||||
of capital stock — precisely Smith's argument for keeping circulating
|
||||
capital in motion rather than idle.
|
||||
40
examples/supply-chain-vsm/output/entities/monopsony-power.md
Normal file
40
examples/supply-chain-vsm/output/entities/monopsony-power.md
Normal file
@@ -0,0 +1,40 @@
|
||||
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-22 source=market-structure -->
|
||||
|
||||
# Monopsony Power
|
||||
|
||||
## Definition
|
||||
|
||||
Market power held by a dominant buyer who faces many sellers, enabling
|
||||
the buyer to suppress prices, extend payment terms, and impose conditions
|
||||
below what competitive markets would support. In supply chains, monopsony
|
||||
is exercised by large retailers or manufacturers who represent a significant
|
||||
fraction of a supplier's revenue, giving them leverage to dictate terms
|
||||
the supplier cannot credibly refuse. The long-run consequence is supplier
|
||||
margin compression, underinvestment in quality, and supply fragility.
|
||||
|
||||
## Source
|
||||
|
||||
Market Structure in Modern Supply Chains, §Monopsony and Buyer Power
|
||||
|
||||
## Supply Chain Domain
|
||||
|
||||
Market Structure
|
||||
|
||||
## VSM Assignment
|
||||
|
||||
S3* — Monopsony power is exercised through the management control layer:
|
||||
buyers set terms (pricing, payment, specification) that govern the
|
||||
operational relationship. The S3* (audit/control) analogy holds because
|
||||
the buyer uses its inspection and approval rights to enforce compliance
|
||||
with terms extracted through buyer power.
|
||||
|
||||
## WoN Concept
|
||||
|
||||
Combination of Masters — Smith describes the combination of masters as the
|
||||
coordinated exercise of employer power to suppress wages below their
|
||||
competitive level. Monopsony power in modern supply chains operates through
|
||||
the same mechanism: a concentrated buyer (or buyers acting in parallel)
|
||||
systematically extracts value from fragmented suppliers, just as Smith's
|
||||
combination of masters extracted value from fragmented workers. The parallel
|
||||
is structural: in both cases, one side of the market is coordinated and the
|
||||
other is atomistic, enabling systematic suppression of returns.
|
||||
@@ -0,0 +1,50 @@
|
||||
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-22 source=market-structure -->
|
||||
|
||||
# Platform Intermediary
|
||||
|
||||
## Definition
|
||||
|
||||
A company that controls the infrastructure through which supply chain
|
||||
participants transact, without itself producing or consuming goods. Platform
|
||||
intermediaries earn revenue from network access fees, transaction commissions,
|
||||
data analytics, and financing services. Their market power derives from
|
||||
network effects: value accrues to participants proportionally to the size
|
||||
of the network, creating winner-take-most dynamics. Unlike traditional
|
||||
intermediaries, platforms bear no inventory risk — that remains with
|
||||
producers and carriers.
|
||||
|
||||
## Source
|
||||
|
||||
Market Structure in Modern Supply Chains, §Platform Intermediaries
|
||||
|
||||
## Supply Chain Domain
|
||||
|
||||
Market Structure
|
||||
|
||||
## VSM Assignment
|
||||
|
||||
S4 — Platform intermediaries function as the intelligence layer of the
|
||||
supply chain, aggregating and intermediating market information across many
|
||||
buyers and sellers simultaneously. They are not operational (S1) but shape
|
||||
what operations are possible and at what price.
|
||||
|
||||
## WoN Concept
|
||||
|
||||
Merchant Capital — Smith's analysis of merchant capital — capital employed
|
||||
to buy in one market and sell in another, earning profit from differential
|
||||
access — maps closely to platform intermediaries. Both earn profit not
|
||||
from production but from controlling access to exchange. Smith noted that
|
||||
merchants are geographically mobile and have no necessary loyalty to any
|
||||
particular productive system, giving them structural leverage over producers
|
||||
who are fixed. Platform intermediaries exhibit the same dynamic at
|
||||
unprecedented scale: the platform has no physical attachment, yet producers
|
||||
who exit lose access to the entire buyer network.
|
||||
|
||||
## Modern Context
|
||||
|
||||
Platform intermediaries represent a structural innovation Smith could not
|
||||
have anticipated: they capture the coordination function of merchant capital
|
||||
while eliminating its inventory risk and capital requirements. The result is
|
||||
a higher-leverage, lower-capital form of intermediation than Smith described,
|
||||
but the underlying logic — control of the exchange infrastructure creates
|
||||
extractable surplus — is precisely what he analysed.
|
||||
38
examples/supply-chain-vsm/output/entities/safety-stock.md
Normal file
38
examples/supply-chain-vsm/output/entities/safety-stock.md
Normal file
@@ -0,0 +1,38 @@
|
||||
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-22 source=capital-and-inventory -->
|
||||
|
||||
# Safety Stock
|
||||
|
||||
## Definition
|
||||
|
||||
Inventory held in excess of expected demand to buffer against supply and
|
||||
demand uncertainty. Safety stock represents capital deliberately kept
|
||||
unproductive — not expected to be consumed in normal operations — in order
|
||||
to preserve operational continuity when actual demand or supply deviates
|
||||
from forecast. The optimal safety stock level balances inventory holding
|
||||
cost against stockout cost.
|
||||
|
||||
## Source
|
||||
|
||||
Capital and Inventory in Supply Chain Management, §Safety Stock and Reserve
|
||||
Capacity
|
||||
|
||||
## Supply Chain Domain
|
||||
|
||||
Capital Management
|
||||
|
||||
## VSM Assignment
|
||||
|
||||
S3 — Safety stock is a management-level capital allocation decision. The
|
||||
question of how much safety stock to hold is a resource management choice
|
||||
that trades off capital efficiency against operational resilience, made at
|
||||
the S3 (management/control) level.
|
||||
|
||||
## WoN Concept
|
||||
|
||||
Accumulation of Stock — Smith describes the accumulation of stock as a
|
||||
prerequisite for productive activity: you cannot employ workers until you
|
||||
have stock to sustain them. Safety stock is a modern instantiation of this
|
||||
logic — productive continuity requires a buffer of stock to absorb
|
||||
variability, just as Smith's pre-capitalist household needed a reserve before
|
||||
it could specialise its labour. Both represent capital held in reserve against
|
||||
contingency rather than deployed in production.
|
||||
@@ -0,0 +1,41 @@
|
||||
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-22 source=market-structure -->
|
||||
|
||||
# Single-Source Dependency
|
||||
|
||||
## Definition
|
||||
|
||||
A supply chain condition in which a buyer relies on one supplier for a
|
||||
critical component or material with no readily substitutable alternative.
|
||||
Single-source situations arise from supplier specialisation, geographic
|
||||
concentration of competent producers, or deliberate buyer policy
|
||||
maximising scale economies with a preferred partner. During disruptions,
|
||||
a single-sourced supplier in a critical category temporarily possesses
|
||||
monopoly-like pricing power, as the buyer has no alternative and demand
|
||||
is inelastic in the short run.
|
||||
|
||||
## Source
|
||||
|
||||
Market Structure in Modern Supply Chains, §Market Concentration and
|
||||
Single-Source Dependencies
|
||||
|
||||
## Supply Chain Domain
|
||||
|
||||
Risk
|
||||
|
||||
## VSM Assignment
|
||||
|
||||
S4 — Single-source dependency is an intelligence failure at the S4 level:
|
||||
the supply chain's environmental scanning has not identified and mitigated
|
||||
the concentration risk. Resolving it requires S4 action — supplier
|
||||
development, geographic diversification, or technology substitution.
|
||||
|
||||
## WoN Concept
|
||||
|
||||
Monopoly in Trade — Smith argues that monopolists charge the highest price
|
||||
buyers will bear, and that this price is always above the competitive level.
|
||||
A single-source supplier during a supply disruption is a temporary
|
||||
monopolist: buyers cannot immediately switch, demand is inelastic, and the
|
||||
supplier can extract above-normal prices. Smith's analysis of how monopoly
|
||||
restricts supply and raises price applies directly to the disrupted
|
||||
single-source scenario, even though in normal conditions the same supplier
|
||||
may operate competitively.
|
||||
@@ -0,0 +1,38 @@
|
||||
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-22 source=coordination-mechanisms -->
|
||||
|
||||
# Vendor-Managed Inventory
|
||||
|
||||
## Definition
|
||||
|
||||
A supply chain coordination arrangement in which the supplier takes
|
||||
responsibility for maintaining stock levels at the buyer's location,
|
||||
using shared inventory data to trigger automatic replenishment. Payment
|
||||
occurs at point of consumption rather than delivery. The buyer surrenders
|
||||
operational control over replenishment in exchange for reduced
|
||||
administrative burden and improved demand signal quality.
|
||||
|
||||
## Source
|
||||
|
||||
Coordination Mechanisms in Modern Supply Chains, §Vendor-Managed Inventory
|
||||
|
||||
## Supply Chain Domain
|
||||
|
||||
Coordination
|
||||
|
||||
## VSM Assignment
|
||||
|
||||
S2 — VMI is a formal coordination mechanism that assigns the replenishment
|
||||
function to the party best positioned to perform it. It reduces oscillation
|
||||
(the bullwhip) by giving the upstream party direct visibility of
|
||||
consumption rather than batched orders.
|
||||
|
||||
## WoN Concept
|
||||
|
||||
Division of Labour — VMI is an application of Smith's division of labour
|
||||
principle at the inter-firm level. The inventory management function —
|
||||
previously split between buyer (demand tracking) and supplier (order
|
||||
fulfilment) with coordination friction between them — is consolidated
|
||||
with the supplier, who has the information and capability to perform it
|
||||
most efficiently. The functional specialisation reduces transaction costs
|
||||
and improves the quality of the upstream demand signal, mirroring Smith's
|
||||
argument that specialisation improves output quality and reduces waste.
|
||||
Reference in New Issue
Block a user