The Research Of Retail Supply Chain Information Coordination And Optimization Based On System Dynamics

The development of retail industries has presented a soundmomentum on the national economy and played, at the same time, a significantrole in service and commodity circulation industries. In recent years, however,large-scale overseas-funded retail industries speed up their efforts to developin China since China has tended to relax control over the retail industry, whileour domestic industries have remained immature and are faced with increasingpressure of competition. The implementation of supply chain management toretail industries is able to advance business development as well as to followthe trend of market development. Among three aspects of supply chainmanagement including material, capital and information flow, informationflow is the bedrock for the smooth circulation of material and capital flow insupply chain. By information cooperation, retail industries and upstreammanufacturers can not only enable all organizations to seize changes of marketenvironment, but also respond to market requirement on the premise ofdeclining relative operation cost. Therefore, thorough research and analysisabout the information coordination in the supply chain of retail industries isnecessary for the improvement of management performance of those industries.This essay, on the basis of summarizing relative researches aboutinformation coordination in the supply chain and its theories, makes someother researches on supply chain management system and its optimizationbased on system dynamics.First, this paper elaborates the relevant concepts and theories of systemtheory, information cooperation, supply chain management and systemdynamics, laying the theoretical foundation for the following text by using thesystem dynamics method to study the information coordination system in theretail industry supply chain. And through the collection of data, the presentsituation of domestic retail supply chain management in China is summarized,the existing problems are analyzed and the necessity of retail enterprisessupply chain implementation of information coordination is indicated.Then, according to the characteristics of the retail enterprises supplychain, two subsystems: distribution center—retail stores and manufacturers—distribution center and cause and effect feedback figure of system are set uprespectively, the relationship between the variables in the system is in-depthanalyzed, and then SD model of information collaborative model and thecurrent model is constructed. On this basis, based on the Vensim PLEsimulation platform using the method of system dynamics, I simulate with theabove two models respectively, comparatively analyze the changes in supply chain under the two modes, find the severe bullwhip effect existing in thesystem, and prove the importance of implementation of informationcoordination on the leadership of the retail supply chain. Then under theinformation coordination scheme, by simulating and optimizing the factorsaffecting the relevant variables of the system, I found the important supportingrole of these variables for the stability of the supply chain and enterprisedecision. Finally, according to the simulation results, the targetedrecommendations for the retail enterprise supply chain management are made.