| Inventory control is one of important activities in supply chain management and plays an important role in supply chain of the corporation. Especially in an increasingly global market, customers' needs and expectations are showing more uncertainty, diversity and dynamics, and the life cycle of commodity and the response time for enterprises are getting shorter continuously. Therefore, enterprises are facing more competitive environment and more serious global competition with no boundary limit, which intensifies the complexity and dynamics in inventory control in supply chain, and makes it more and more difficult to coordinate inventory control. There are still many topics to discuss and study in inventory control, but System Dynamics theory Allows for the complexity, dynamics and time delay in inventory control, so it can help enhancing the inventory research.Firstly, based on theory of System Dynamics, combining with the complicated and dynamic character in supply chain inventory control, we find the feasibility of application of System Dynamics on inventory control. Secondly, using system dynamics theory constructs the basic inventory model of the traditional multistage supply chain, and under the input of sine form demand, the model shows typical "Bullwhip Effects". Then through the model studies the cause of bullwhip effects, and makes corresponding advices to tame the bullwhip. And last, recurring to a real example, studies the appearance of bullwhip and the effect to tame the phenomenon.The results show that, in the basic traditional multistage inventory style, it's really easy to cause inventory fluctuation and magnification and it's often severe. Optimizing the supply chain framework, sharing the information and strengthening the collaboration in the supply chain are the several main ways to tame the bullwhip effect. Thereinto, effectively using modern information technology is the most important factor to tame the bullwhip effect in supply chain management. |
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