Research About Supply Chain System Based On TOC

Today, supply chain is facing an increasingly tough challenge. How to improve the competitiveness and how to increasing the revenue has had a lot of attention from enterprises and management scholars. However, at present, whether those advanced management technology or management methods fails to fundamentally deal with the opposition and competition among supply chain members. There is an urgent need for a new operation mode of supply chain, which can coordinate the behavior of supply chain members to make such every single action to increase the profit of supply chain. Theory of constraint (TOC) is a management method based on system and the system. So the paper will apply it to rebuild the supply chain operation mode, with the hope of improving the supply chain revenue.First, researches on TOC are reviewed to make sure that it is possible to apply TOC on the supply chain. Secondly, this paper discusses in detail the way of thinking and work of TOC. With the analysis of supply chain, the paper tries to use TOC to solve the core conflict of supply chain and bring out the new operation mode of it based on TOC as well as the operation environment, including supply chain partnership, the organization structure and the information management system. Thirdly, this paper analyzes the risks and benefits of using TOC mode. There are sources analysis, preventive measures and risk sharing measures in the risk part. There are sources analysis and benefits sharing measures in the benefit part. At last, there is a math mode referring to the two-stage decision-making model to verify that the implementation can increase the income of supply chain.