Research On System Dynamics Simulation And Optimizationfor Retailer Dual-channel

At the moment of21hours and20minutes after Single’s Day, the transaction ofTaobao was exceeding30billion yuan,which was the most striking headline words on thethe major portals for the following few days.In the real business world,The rapiddevelopment of e-commerce has brought tremendous commercial interests,making anumber of large retailers to focus attention to promote product sales through the dualchannel strategy of online store and physical store, such as Suning Tesco and the Gomeonline mall. From the view of customers, they obtained more convenience. They have morechoices to realize their demand not only buying from the traditional physical stores but alsothe online stores.E-commerce makes the structure the product supply chain showing features of dualchannels. This study mainly focuses on a new model of retailers dual channel.Dual-channelretailer as a retail overall which can reach more potential customers to enhance thepossibility to buy,However, this mode also bring a lot of management thinking. Forexample,physicalretailers will face inventory strategy and pricing mode selection and thelike after adding online channel to be the new dual-channel retailer.so,it is meaningful toresearch on retailer dual-channel.This paper considers a supply chain structure which is consist of a manufacturer with adual channel retailer, taking the short life cycle products bought by Suning and other largephysical stores or online stores.The capacity of the target market for such products is limited,and we also use word of mouth marketing model to predict changes in market demand.In this research, it has considered so many flexible factors including customer satisfactionand price impact on demand,the production cycle, delivery period, stock, distributionofsupplied products among different channels, replenishment outlets and many otherpractical problems. Because of the complex interactions between the various elements,making the analysis of such problems is very complex.The traditional method ofmathematical modeling is too difficult to describe these non-linear relationship clearly andconcisely, so it is not to be applied to the study of this problem.Therefore, this paper chooses system dynamics as tool to simulate the production operations, order distributionand sales modes under the the retailer dual-channel supply chain, establishing three kinds ofsystem dynamics simulation modeling for production operations and inventory coordinationunder retailer dual-channel supply chain: model of retailer dual-channel supply chain basicstrategy, model of independent inventory replenishment strategy, inventory sharing policymodel. Firstly, the causal loop is used to analysis the causal relationship of key variables inthe model.Secondly, it has compared the advantages and disadvantages of threedual-channel retailer inventory coordination policy model among tock levels, inventorylevels and market share according to the simulation data analysis within the simulationperiod.Finally, further research coordinated strategy on stock selection problem under twodifferent pricing modes.Through research, it provides management implications fordual-channel retailer as a whole how to implement better retail inventory coordinationpolicy between the store and online shopping stores to enhance the supply and demandmatchingand the optimal inventory coordination strategy choice under different pricingmodes.Thereby increasing market demand satisfaction, reducing operation costs andobtaining greater market share and profitability.