Files
markitect-main/examples/supply-chain-vsm/output/mappings/coordination-mechanisms-mappings.md
tegwick 574bb11db6 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>
2026-02-23 00:08:51 +01:00

4.0 KiB

WoN Mappings — Coordination Mechanisms

Generated from: artifacts/sources/coordination-mechanisms.md


Bullwhip Effect → Natural Price as Central Price

Supply Chain Entity

Bullwhip Effect

WoN Entity

Natural Price as Central Price

Mapping Rationale

Smith describes natural price as a centre of gravity around which market price perpetually oscillates. The bullwhip effect describes an analogous oscillation in supply chain order quantities around actual demand. In both cases, a signal (market price; order quantity) should converge to a reference value (natural price; true demand) through a corrective mechanism, but systematic distortions prevent convergence. Smith's mechanism is capital mobility; the bullwhip's is information transparency. Where Smith shows that monopoly or regulation blocks convergence, the bullwhip shows that information delay and batching produce the same failure in a nominally competitive chain.

Conceptual Continuity

Moderate — The oscillation-around-equilibrium structure is shared, but the bullwhip's amplification mechanism (each tier adding safety buffers) is an information processing problem that Smith did not specifically analyse. His account of price oscillation focuses on capital reallocation; the bullwhip operates through order distortion without necessarily involving capital reallocation.

VSM Inheritance

Bullwhip Effect inherits S2 via Natural Price as Central Price (coordination layer failure — the anti-oscillation mechanism is absent or impaired).


Vendor-Managed Inventory → Division of Labour

Supply Chain Entity

Vendor-Managed Inventory

WoN Entity

Division of Labour

Mapping Rationale

Smith argues that dividing labour so each party performs only what they are best equipped to do increases productivity and reduces waste. VMI applies this principle at the inter-firm boundary: the inventory replenishment function, previously split between buyer (tracking stock levels) and supplier (responding to batch orders), is consolidated with the supplier. The supplier has superior information about their own lead times and production capacity, and direct visibility of consumption rather than orders. The functional consolidation reduces the coordination friction at the boundary and improves signal quality — precisely the efficiency gains Smith predicts from specialisation.

Conceptual Continuity

Strong — VMI is a direct application of division of labour at the inter-firm level. The boundary conditions are different (firms rather than workers; coordination through IT rather than supervision), but the mechanism — assigning a function to the party best positioned to perform it — is identical.

VSM Inheritance

Vendor-Managed Inventory inherits S1/S2 via Division of Labour (operational specialisation creating a more effective coordination arrangement).


Demand Signal → Effectual Demand

Supply Chain Entity

Demand Signal

WoN Entity

Effectual Demand

Mapping Rationale

Smith's effectual demand — the demand of those willing and able to pay — is the signal that calls productive resources into action. When effectual demand exceeds supply, market price rises and capital is attracted; when it falls short, production contracts. The modern demand signal serves the same coordination function: it tells upstream nodes how much to produce. The structural difference is one of mechanism: Smith's effectual demand works through price as a lagged, aggregated, emergent signal; the modern demand signal is an explicit, real-time, granular data feed. The goal (synchronising production with consumption) and the failure mode (distorted signals cause misallocation) are shared.

Conceptual Continuity

Strong — Effectual demand and the demand signal are the same coordination function in different technological settings. The modern version is Smith's concept made explicit and machine-readable.

VSM Inheritance

Demand Signal inherits S2 via Effectual Demand (primary coordination variable regulating upstream resource allocation).