Optimisation of Supply Chain Network Modeling and Perfomance Measurement in Flow of Production

Abstract

Present trend issues in supply chain management ability to execute the plan when forecast errors occur, how to improve service levels while simultaneously mitigating cost, and resurgence in contingency planning problem. Supply chain management plays a vital role in the growth of the industry, survival in the market, the production rate, and the dynamic interaction among the suppliers and the customers. Strategic decision makers need comprehensive models to guide them in efficient decision making that increases the profitability of the entire chain. System dynamic is a methodology whereby complex, dynamic and nonlinear interactions can be understood and analysed. This paper presents a supply chain model of a medium size industrial iron foundry which will produce gray cast iron and Spheroidal graphite cast iron, and also the dynamic interaction between the variables using system dynamic approach. Under different delay conditions, rejection rates, conditions, the policy experimentations carried out considering various factors of the foundry and their degree of development. The model results have been discussed and validated based on the actual results of a foundry. This paper has addressed many important issues related to demand, inventory, production rates of a foundry.

Keywords: Supply Chain Management, System Dynamic

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