System dynamics-based model for supply chain organizational collaboration

2020 ◽  
pp. 1-11
Author(s):  
Wenhan Xu ◽  
Hongguang Bo ◽  
Yinglian Chen
Keyword(s):  
Supply Chain ◽  
Standard Deviation ◽  
System Dynamics ◽  
Dispersion Coefficient ◽  
Current Model ◽  
Distribution Center ◽  
Market Demand ◽  
Average Value ◽  
Collaboration Model ◽  
The Impact

In order to explore the impact of the system-driven supply chain, collaborative operations, and organizational characteristics on supply chain operational performance, this paper based on the system dynamics method to simulate the established information collaborative supply chain model, analyze market demand data, inventory before and after the supply chain sharing The changes of inventory fluctuations in the supply chain and related calculations are compared with the simulation results under the current model to prove the importance of implementing information collaboration in the supply chain of a large retailer-led supply chain. The research in this paper shows that with the supply chain information collaboration model, the average value of the manufacturer’s order quantity has dropped by 30.4%. Affected by this, the dispersion coefficient has also dropped from 0.76 to 0.6, and the average number of orders in the distribution center has also dropped by 12.2%; With the supply chain information synergy model, the average value of the raw material inventory of manufacturers has dropped significantly, from 3400 in the current model to 2500 in the information synergy model, a decrease of 27%, the standard deviation has also decreased by 57%, and the dispersion coefficient has dropped from 0.98 to 0.50; The standard deviation rate of the inventory of the distribution center is 30%; from the perspective of the overall retail supply chain, the inventory has fallen by 14%, the standard deviation has fallen by 34%, and the dispersion coefficient has dropped from 0.76 in the current model to the information collaboration model. 0.6, it can be seen that the mode of supply chain information coordination has a great effect on reducing supply chain costs and improving supply chain efficiency.

scholarly journals Supply Chain Decision-Making and Coordination considering Anticipated Regret under Price Discount

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-14
Author(s):  
Jie Jian ◽  
Huipeng Li ◽  
Nian Zhang ◽  
Jiafu Su
Keyword(s):  
Supply Chain ◽  
Sensitivity Coefficient ◽  
Pricing Strategy ◽  
Market Demand ◽  
Anticipated Regret ◽  
Consumer Heterogeneity ◽  
Price Discount ◽  
Demand Functions ◽  
Homogeneous Product ◽  
The Impact

The increasing homogeneous product market has made more competition among companies to focus on improving customers’ experience. In order to get more competitive advantages, companies often launch discount products to attract consumers. However, stimulated by discount products, the perception of anticipated regret is becoming stronger, which is an inevitable issue in front of companies with price discount strategy. Considering the impact of anticipated regret for discount products, this paper quantitatively describes the utility functions and deduces the demand functions of original price products and discount products. The theoretical analysis and numerical simulation are used to analyze centralized and decentralized models of supply chain for discount products. On its basis, the revenue-sharing contract is designed to optimize the profits of supply chain. This paper finds that the price of products increases first and then decreases with the increase of regret sensitivity coefficient and consumer heterogeneity. When the regret sensitivity coefficient and consumer heterogeneity are lower, companies in the supply chain can adopt the “skimming pricing” strategy in order to obtain more profits. When the regret sensitivity coefficient and consumer heterogeneity increase, companies in the supply chain can adopt “penetrating pricing” strategies to stimulate market demand. For high regret consumers, manufacturers can adopt a “commitment advertising” strategy to promise price and quality, and retailers can adopt a “prestige pricing” strategy to reduce consumer perception of regret. In response to products with higher differences in consumer acceptance, manufacturers can adopt a “differentiated customization” strategy to meet different types of consumer demand and retailers can adopt a “differential pricing” strategy for precise marketing.

Analysis and Verification of Bullwhip Effect Based on System Dynamics

2013 ◽  
Vol 340 ◽  
pp. 312-319
Author(s):  
Fu Xin Yang ◽  
Bai Lan Zhang ◽  
Zhi Yuan Su
Keyword(s):  
Supply Chain ◽  
System Dynamics ◽  
Correlation Coefficient ◽  
Lead Time ◽  
Process Model ◽  
Autoregressive Process ◽  
Bullwhip Effect ◽  
Simulation Software ◽  
Simulation Results ◽  
The Impact

To study the bullwhip effect (BWE) in supply chain (SC), this paper built two system dynamics (SD) models strictly referring to the AR(1) (autoregressive process) model constructed by Frank Chen. Using Vensim simulation software, it analyzed the impact of the correlation coefficient of demand, lead time, smoothing time of demand and information to BWE, and then put forward some proposals on how to reduce BWE. By contrasting the simulation results of SD models with the AR(1) models', it verifies the validity of the AR(1) model of Frank Chen from a simulation perspective. It also shows SD model combined with AR(1) model can analyze BWE in SC reliably and powerfully.

scholarly journals Supply Chain Investment in Carbon Emission-Reducing Technology Based on Stochasticity and Low-Carbon Preferences

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-18
Author(s):  
Shan Yu ◽  
Qiang Hou
Keyword(s):  
Supply Chain ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Equilibrium Strategy ◽  
Market Demand ◽  
Low Carbon ◽  
Carbon Emission Reduction ◽  
Dynamic Perspective ◽  
The Cost ◽  
The Impact

Due to excessive greenhouse gas emissions, carbon emission-reducing measures are urgently needed. Important emission-reduction measures mainly include carbon trading and low-carbon cost subsidies. Comprehensive consideration of these two policies is a research hotspot in the field of low-carbon technology investment. Based on this background, this paper considers the impact of consumer low-carbon preferences on market demand and the impact of uncertainty in carbon emission-reduction behaviour. We construct a stochastic differential game model with upstream and downstream enterprises based on cost-sharing coordination under a cost subsidy. From a dynamic perspective, this paper researches the optimal equilibrium strategy and evolution characteristics of the joint emission-reduction mechanism in a supply chain. This paper discusses the sensitivity of the parameters and uses numerical simulation to verify the impact of each parameter on the emission-reduction decision-making activities of stakeholders after introducing the cost subsidy. The results show that a cost subsidy policy can promote carbon emission-reduction investment and supply chain profit. Thus, it is important to strengthen technical cooperation and exchange among enterprises.

scholarly journals Information and material delays effect on price setting, operating contribution margins and cash conversion cycles in feed ingredients supply chain

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marcos Fraiha
Keyword(s):  
Supply Chain ◽  
System Dynamics ◽  
Animal Feed ◽  
Model Simulation ◽  
Dynamics Modeling ◽  
Content Type ◽  
Pricing Decisions ◽  
Information Delay ◽  
Multiple Variables ◽  
The Impact

PurposeThe purpose of this report was to evaluate the effectiveness and practicality of system dynamics modeling in integrating econometric equations to describe the effects of supply chain material and information delays on pricing decisions and consequent financial results in an animal feed export business.Design/methodology/approachAn empirical dynamic model, loaded with econometric theory of price effect on competitive demand, was used to describe the input data.FindingsThe model simulation outputs proved themselves relevant in analyzing the complex interconnections of multiple variables affecting the profitability in a commercial routine, supporting the decision process among sales managers. The impact of information delay on price decisions and business financial results were estimated using the model proposed.Originality/valueThis paper describes an empirical model, based on system dynamics, that predicts operating contribution margins and cash conversion cycles based on estimation of information and material delays in a supply chain. The method is pragmatic and simple for business routine implementation.

Effect of Logistics Management Practices on Supply Chain Performance of Manufacturing Firms in Kenya

2020 ◽  
Vol 4 (3) ◽  
pp. 50
Author(s):  
Mercy Mwende Muema ◽  
Dr. John Achuora
Keyword(s):  
Supply Chain ◽  
Management Practices ◽  
Manufacturing Firms ◽  
Distribution Center ◽  
Logistics Management ◽  
Supply Chain Performance ◽  
Essential Information ◽  
Stock Control ◽  
Set Up ◽  
The Impact

Purpose: The aim of this study was to analyze the impact of logistics management on success of supply chain among Kenyan manufacturing companies.Methodology: A descriptive research design was adopted. The objective populace of the investigation was all the 708 assembling firms in Kenya authorized under Kenya Association of Manufacturers the year 2017. An equation was utilized to choose 96 firms out of the complete 708 firms. The head of acquirement from each firm was focused as the unit of perception. Quantitative essential information was gathered by the examination. The investigation utilized both enlightening and inferential measurements for examination. A relapse model was utilized to set up the connection between the factors. SPSS adaptation 21 was utilized for information examination. Information discoveries was exhibited through tables and figures.Results and conclusion: The study found that warehousing management positively and significantly affects supply chain performance of manufacturing firms in Kenya. The results further showed that inventory management practices positively affect the supply chain performance of manufacturing firms. Consequently, order processing management was found to positively affects the supply chain performance of manufacturing firms in Kenya. The study finally established that transportation management positively affects the supply chain performance of manufacturing firms in Kenya.Unique contribution to theory, policy and practice: The study prescribes that the administration of assembling firms should consolidate the practices into their framework so as to improve their presentation and competitiveness. Strategic administrators of different assembling firms should lead every one of these pieces of training to guarantee that there is slicing of expenses through co-ordinations rehearses. The examination suggests for the upgrade stock control and the workforce needs outer direction concerning stock control. There is requirement for more opportunity to be taken in the procedures inside the distribution center. The association ought to have satisfactory stock control measures set up. The investigation additionally prescribes that it is important to designate stockroom assets proficiently and successfully to upgrade the efficiency and decrease the activity expenses of the distribution center. All assembling organizations and different associations ought to be encouraged to grasp the idea with the goal that they can probably receive the rewards of embracing these practices.

System dynamics research of remanufacturing closed-loop supply chain dominated by the third party

2017 ◽  
Vol 35 (4) ◽  
pp. 379-386 ◽  
Author(s):  
Shidi Miao ◽  
Tengfei Wang ◽  
Deyun Chen
Keyword(s):  
Supply Chain ◽  
System Dynamics ◽  
Closed Loop ◽  
Rapid Development ◽  
Waste Recycling ◽  
Third Party ◽  
Closed Loop Supply Chain ◽  
The Third ◽  
The Third Party ◽  
The Impact

With the rapid development of the electronic information industry in recent years, electronic products are being updated faster and faster, and e-waste recycling has become a common problem around the world. Firstly, this article contrasts recycling at home and abroad using the predicament of Midea Corp. Based on a closed-loop supply chain with the system dynamics method, a model is constructed and simulated. In this model, the collection point coverage rate is introduced to adjust the e-waste recycling rate dynamically. Aiming at a recycling mode dominated by the third party of the closed-loop supply chain, the article mainly discusses the impact on the sales rate and market share of the recycling model by third-party enterprises and compares the total revenue of all supply chains. Simulation results show that the model is more effective and optimal than the traditional recycling model.

scholarly journals System Dynamics Modeling in Additive Manufacturing Supply Chain Management

Processes ◽  
2021 ◽  
Vol 9 (6) ◽  
pp. 982
Author(s):  
Jairo Nuñez Rodriguez ◽  
Hugo Hernando Andrade Sosa ◽  
Sylvia Maria Villarreal Archila ◽  
Angel Ortiz
Keyword(s):  
Supply Chain ◽  
Additive Manufacturing ◽  
System Dynamics ◽  
Raw Material ◽  
Flow Diagram ◽  
Disruptive Technology ◽  
Chain Management ◽  
Starting Point ◽  
Operating Policies ◽  
The Impact

A system dynamics model was developed with the primary purpose of visualizing the behavior of a supply chain (SC) when it adopts a disruptive technology such as additive manufacturing (AM). The model proposed a dynamic hypothesis that defines the following issue: what is the impact of the AM characteristics and processes in the SC? The model was represented through a causal diagram in thirteen variables related to the SC, organized in two feedback cycles and a data flow diagram, based mainly on the three-essential links of the SC and the order display traceability: supplier–focal manufacturer–distribution Network. Once proposed, the model was validated through the evaluation of extreme conditions and sensitivity analysis. As a result, the dynamic behavior of the variables that condition the chain management was analyzed, evidencing reduction times in production, especially in products that require greater complexity and detail, as well as reductions in inventories and the amount of raw material due to production and storing practices from AM. This model is the starting point for alternative supply chain scenarios through structural operating policies and operating policies in terms of process management.

scholarly journals Supply Chain Management and Risk Management in an Environment of Stochastic Uncertainty (Retail)

Risks ◽  
2021 ◽  
Vol 9 (11) ◽  
pp. 197
Author(s):  
Sergey A. Lochan ◽  
Tatiana P. Rozanova ◽  
Valery V. Bezpalov ◽  
Dmitry V. Fedyunin
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Performance Indicators ◽  
Bullwhip Effect ◽  
Retail Trade ◽  
Distribution Center ◽  
Stochastic Uncertainty ◽  
Operational Risks ◽  
The Impact

In the context of stochastic uncertainty and the increasing complexity of logistics processes in the retail sector, managers face a problem in obtaining accurate forecasts for the dynamics of changes in key business performance indicators. The purpose of the present work is to assess the impact of risk events and unstable conditions on the level of quality of supply chain services and economic indicators of the retail trade network. Using the anyLogistix software tool, a simulation model was constructed that allows assessing operational risks and their impact on key indicators of the supply chain using the bullwhip effect. Besides, a statistical model of the impact of the ripple effect in the event of failures caused by the occurrence of a man-made risk event and the shutdown of production of one of the suppliers on the financial, customer, and operational performance indicators of the supply chain of grocery retail. The results obtained show that the main factors of changes in the supply chain are operational risks associated with fluctuations in demand and order execution time by the distribution center. With a sufficiently high level of occurrence, their impact on productivity and quality of service is low because they can be eliminated in a short time. The simulation results show that the most tangible risks for the food retail supply chain are supply chain failures, whose consequences require significant coordinating efforts and longer recovery times, as well as additional investments. For example, events, such as a fire in one distribution center and the shutdown of production for 1 week of one of the suppliers of dairy products will lead to the loss of USD 181.75 million by the grocery retailer, which is 3% of the expected revenue. We believe that risk management in supply chains is becoming increasingly complex, and to make effective managerial decisions, it is necessary to constantly improve the tools that combine analytical and optimization methods, as well as simulation modeling.

scholarly journals A System Dynamics Model to Evaluate Effects of Retailer-Led Recycling Based on Dual Chains Competition: A Case of e-Waste in China

2018 ◽  
Vol 10 (10) ◽  
pp. 3391 ◽  
Author(s):  
Renzheng Xue ◽  
Fengbin Zhang ◽  
Feng Tian
Keyword(s):  
Supply Chain ◽  
System Dynamics ◽  
Closed Loop ◽  
Electronic Waste ◽  
Waste Recycling ◽  
System Dynamics Model ◽  
Dynamics Model ◽  
Market Competitiveness ◽  
Negative Impacts ◽  
The Impact

China, as the largest electronic waste producer in the world, is facing a critical challenge to manage its negative impacts on the environment. Hence, e-waste management is crucial for sustainable Chinese economic development. In this paper, a system dynamics model is adopted to identify the effects of retailer-led recycling based on closed-loop dual chains competition. The influence of contracts made by manufacturers on different retail modes is also discussed. From the aspects of total revenue (TR), market share (MS) and market competitiveness (MC), this paper analyzes the impact of e-waste recycling coefficient (ERC) on supply chain and analyzes the equilibrium solution of total supply chain return. The research results show that the contract incentive mechanism can improve the retailer’s recycling enthusiasm, and the effect on the retail mode of executive shop is more obvious. When the ERC is adjusted to 44.3%, the TR of supply chain is optimal, and the MS and MC occupy an obvious advantage.

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