System Dynamics Model to Understand DemandConditioning Dynamics in Supply Chains

摘要

Demand Conditioning is one of the methods used to address imbalances between supply anddemand in supply chains. This requires the manufacturer to adjust the demand plan to respondto supply issues. The supply chain has several sources of delays and uncertainties such as leadtimes at different stages, forecast error, supply yield variability etc. that could potentially triggeror influence the conditioning process. In this paper, we examine dynamical effects in theconditioning process to study potential instabilities. We developed a Systems Dynamics model ofa PC manufacturing supply chain to examine instabilities in the supply chain. This modelprovides insight on supply chain risks and error propagation due to unsynchronized execution.We also use the model to study the effect of different countermeasures to stabilize the supplychain.