Analyzing and Improving Iran Khodro's Spare Parts Supply Chain Using System Dynamics Model

This paper presents a discrete simulation model of the auto spare parts supply chain based on the system dynamics approach. The studied chain has two levels and consists of two firms: a retailer (central repair shop) and a wholesaler (Isaco). This chain model is simulated in order to develop the order policies based on reorder point on two levels of central repair shop and Isaco. The developed model is a nonlinear mathematical model which is simulated by the vensim software. The purpose of simulation exercise is to analyze performance of the auto spare parts’ distribution system and to predict chains’ performance improvements with proposed strategies.