Study On The Coordination Simulation Of Supply Chain With Demand Disruption

With the technological development and the globalization of economy, the level of customer consumption keeps rising, the competition among enterprises increase rapidly, the uncertainty in market demand increase,the management mode based on an enterprise can't win the competition any more. Therefore, the traditional management is changed and gradually substituted by the horizontal management model. Supply Chain Management (SCM) that based on the extended enterprise is the typical new management mode. Practice has proved that the competition in 21st century is among supply chains and supply chains, not among enterprises and enterprises any more.According to the investigation of American Supply Chain Management Association in 2008, there are 98 percents companies suffer from the supply chain disruption, and 58 percents companies suffer from economical loss. Supply chain disruption can be divided into several cases, unanticipated changes in customer demand, the supplier's productivity cannot satisfy the demand, the price of the raw and materials increase or out of stock, delay or destroys in delivery or errors, the price of the fuel increase or out of stock. Supply chain disruption would impact the supply chain system greatly. The supply chain may be no longer a coordinated system. What's more, disruption may threaten the companies'existence or development in the system. In addition to that, owing to the ripple effect, disruption in a supply chain may impact the companies in the other related supply chains. Therefore, the research on the coordination of the supply chain system with disruption is very necessary.In this dissertation, the basic theories of supply chain management, supply chain coordination and system dynamics are reviewed firstly. Then, using the method of system dynamics, the basic model without disruption and contracts of two-tier supply chain system including one manufacturer and one retailer and the model of the system with demand disruption and contracts are built on the platform of Vensim software. Finally, this dissertation establishes several policies with different wholesale price and fraction of supply chain revenue the retailer keeps and conducts simulation in every cases. From analyzing the coordination effect when adopt different contract strategies, the dissertation finds the contract policies which can coordinate the system and also has the ability of anti-disruption.