Research On The Simulation Of Two-tier Supply Chain Inventory Control Based On System Dynamics

With the gradual deepening of manufacturing globalization and economic integration, the market competition which equipment manufacturing enterprises are faced is increasingly fierce, to forecast customer demands is more and more difficult. The competition among enterprises has evolved into between supply chains. The changes make inventory control which is the link of node enterprises in supply chains shows dynamic and complex behaviors. However, the most study on inventory control bases on the optimization of the mathematical model. It is difficult to effectively describe and solve the complex and dynamic feedback relationship of supply chain inventory control system. So, on the basis of the theory and methodology of system dynamics, the research on the inventory control mechanism of two-level supply chain of equipment manufacturing enterprise has important theoretical and practical significance.Firstly, the limitation and deficiency of existing research for supply chain inventory control is analyzed on the basis of the summary and study for relevant literature. Research on the supply chain inventory control and system dynamics theories to analyze the dynamic features of supply chain inventory control mechanism, and combining with system dynamics modeling principle and characteristics, the feasibility of application of System Dynamics on supply chain inventory control is demonstrated.Secondly, analyzing the process and feature of two-tier (the core manufacturer and distributor) supply chain inventory control, and according to system dynamics theory, the purpose and system boundary of modeling is made explicit, the feedback loop of causality of retailer and the manufacturer is analyzed respectively. The system dynamics model of two-tier (production and sales) is constructed, and the validity of model is tested.Finally, the model of inventory control system which combines with the actual situation of R equipment manufacturing enterprise is simulated on the platform Vensim under step demand, and analyzed the results comprehensively. The parameters and structural optimization scenarios and recommendation that effectively reduce stock volatility and inventory level are proposed inventory level.