Impact of information system flow on make-to-order manufacturer supply chain network: systems dynamics approach

Supply chain consists of multifaceted structure which focuses integration of all processes such as sourcing, manufacturing, and on-time distribution of end products to customers. Growing interest in supply chain systems has leaded the need to adopt proper approach which can manage complexity, and broadness of supply chain. The operations of supply chain are a function of many variables having strong interrelationships. Main objective of supply chain is optimization of performance of whole supply chain subjected to dynamic behavior. In this paper we model a framework to simulate supply chain operations with moderate complexity. This model has four echelons around a central make-to-order manufacturer with systems dynamics approach. The objective of this paper is to model the operation of the supply chain network and obtain a true reflection of its behavior with integrating information system flow. Furthermore, performance measures including inventory, safety stock, backlog, and customer satisfaction level are evaluated in primary condition and under four scenarios of four echelon of supply chain. Results of system’s behavior are obtained through simulation of primary condition and each scenario during one year.