Open AccessTwo-stage supply chain inventory management based on system dynamics model for reducing bullwhip effect of sulfur product
Author(s) -
Yulan Zhou,
Hao Li,
Shuoqi Hu,
Yu Xiaozhong
Publication year - 2022
Publication title -
annals of operation research/annals of operations research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.068
H-Index - 105
eISSN - 1572-9338
pISSN - 0254-5330
DOI - 10.1007/s10479-022-04815-z
Subject(s) - bullwhip effect , supply chain , service management , supply chain management , supply chain risk management , outsourcing , product (mathematics) , inventory theory , system dynamics , demand chain , business , service level , causal loop diagram , computer science , operations management , operations research , marketing , economics , engineering , geometry , mathematics , artificial intelligence
Bullwhip effect is prevalent in supply chains, creating supply and inventory risks that affect marketing, supply and production. However, there are limited researches on the optimization of chemical supply chain inventory management. In order to solve the above problem, this paper took the sulfur product supply chain of a sulfur plant as an example, combined with the idea of system dynamics, and systematically studied the inventory control strategy in the distributor-retailer two-level inventory system constituted by the supply chain. Firstly, the causal loop diagram was drawn according to the system relationship between variables in the two-level supply chain, and then the system dynamics model of sulfur product supply chain was formed. Finally, problems existing in the supply chain were explored through simulation, and optimization suggestions were submitted. It can be concluded from the simulation results that there was bullwhip effect in the sulfur product supply chain, and the delay of transportation time and the change of inventory adjustment time would have an impact on the inventory level of each node enterprise in the supply chain. Therefore, the method of building an information sharing platform, implementing visual information management, and adopting logistics transportation service outsourcing could enhance the information exchange among node enterprises, so as to improve the operational efficiency of the entire product supply chain.