Research on Procurement Management of Manufacturing Industry Based on System Dynamics

The paper summarizes the current reaserch findings about the relationship management in procurement management, pointing out that the relationship management is a systems engineering; then the paper analyzes the the relationship among the manufacturers, suppliers, distributors, and other relevent factors of procurement system through system dynamics theory and method, confirming the causual rlationship chart and the system flowchart of the procurement system and deriving the causes tree of the procurement system by vensimPLE which is a kind of software for system dynamics simulation, and then the paper gives the ways to improve procurement relationship management performance including establishing strategic cooperative relationship with the suppliers and distributors, as well as applying modern information technology, providing a new mode to refer for manufacture-sector companies.