A SUPPLY CHAIN SIMULATION MODEL BASED ON SYSTEM DYNAMICS

This paper establishes a two level supply chain simulation model through system dynamics (SD) approach, which shows the exact operation of the whole supply chain clearly, and then, Simulink tool is adopted for that model. Through the simulation, it can be seen the process promptness has the great influence on the enterprises' inventory, production, transportation, and so on. Some little improvement of the information exchange's quickness can bring out large profit indirectly, thus, the value of the information coordination can be gained, in this way, that system dynamics simulation model can be very much helpful for the supply chain management project.