Dynamic Analysis of Inventory Fluctuations in Supply Chain based on System Dynamics Approach

Document Type : Research Paper


1 Associate Prof., Faculty of Management and accounting, Shahid Beheshti University, , Iran

2 MSc. Student in Industrial management, Faculty of Management and Accounting, University of Shahid Beheshti, , Iran.


One of the common problems in the supply chains is inventory fluctuation along the chain, which imposes additional costs to manufacturing organizations, therefore reducing these costs can increase productivity in production. In this regard, in this article, system dynamic methodology is used for dynamical analysis of fluctuation in Sapco’s supply chain; For this purpose, the available and documentary information of Sapco Corporation is used during the simulation period.SD is a powerful tool for modeling complex structures, such as supply chain networks and provides useful information on the interaction of the main system parameters. this article, based on principles of  system dynamics methodology, after presenting the problem of fluctuation in supply chain, dynamic hypothesis that cause problem are formed and then the dynamic model of fluctuation in supply chain are made. After ensuring performance of the model by dynamic models validation tests, three policies (information sharing policy, buffer inventory policy and combined policy) adopt to improve inventory oscillatory behavior and then the impact of implementation of these politics on problematic behavior of dynamic model was showed. The implementation of these policies has led to reduction in inventory fluctuations in the studied supply chain.


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