The impact of decision parameters on the dynamic performance of supply chain

摘要

Based on the Automatic Pipeline, Inventory and Order Based Production Control System (APIOBPCS), a two-echelon supply chain with supply capacity constraint is established using system dynamics theory. The impact of parameters in retailer's ordering policy on the dynamic performance of supply chain is analyzed by simulations. The result shows the inventory parameter in ordering policy is more important than the work-in-process parameter with a stepwise demand input. A tiny change of the former could lead to an acute change of the order, whereas the latter cannot bring such an effect. Moreover, the inventory compensation and work-in-process compensation both couldn’t be ignored in ordering policy. Finally, valuable insights into dynamic performance of supply chain systems were gained and recommended management strategies were given.