Studies Of Control Mechanism Of Supply Chain Inventory Based On System Dynamics

The viewpoint that logistic is the 3~rd origin of profit has been generally recognized, and supply chain inventory management has been the focus of management research accordingly. The enterprises of our country are obsessed by the problem of inventory all along. Lots of enterprises have to arrange buffer-inventories in order to satisfy paroxysmal orders of customers. It is estimated that the buffer-inventories are nearly one third of retail inventories.Nowadays, new methods of supply chain inventory management come forth continually. The representative as follows: Vendor Managed Inventory, Joint Managed Inventory, Multi-controlled Inventory and Collaborative Planning, Forecasting & Replenishment. These methods have limitations although they have spurred some enterprises to succeed.Based on former researches, the writer applies System Dynamics to supply chain inventory management. After establishing SD inventory models in accordance withthree links of supply chain------provider, producer and seller, the writer do somesimulation by Vensim and draw a conclusion. On the basis of the analysis to the models, it is attempted to improve models in order to control inventory of the three links better.The paper's innovation lies in extending the application of SD to supply chain inventory management and finding inventory control's difference of three links, which gives a qualitative and quantitative administration method.The purpose of this thesis is to provide illuminations on the appliance of SD and reveal mechanism of supply chain inventory control through the analysis to the model, in order to provide the reference of supply chain inventory management's practice and the foundation of subsequent researches.