Analysis of Supply Chain Inventory Status with Logistics Disruption

This paper analyzes inventory changes of two-echelon supply chain on account of logistics disruptions by integrating system dynamics principle with Vensim simulation software. We assume that the supply chain of VMI model with one manufacturer and one retailer is operated under the stochastic market demand. Results show that during the period of transportation disruption, though retailer inventory continues to decline, which has been in a negative state, but not much impact on manufacturer inventory in mode of VMI.