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System Dynamics Model for VMI&TPL Integrated Supply Chains

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  • Guo Li
  • Xiaojing Wang
  • Zhaohua Wang

Abstract

This paper establishes VMI-APIOBPCS II model by extending VMI-APIOBPCS model from serial supply chain to distribution supply chain. Then TPL is introduced to this VMI distribution supply chain, and operational framework and process of VMI&TPL integrated supply chain are analyzed deeply. On this basis VMI-APIOBPCS II model is then changed to VMI&TPL-APIOBPCS model and VMI&TPL integrated operation mode is simulated. Finally, compared with VMI-APIOBPCS model, the TPL’s important role of goods consolidation and risk sharing in VMI&TPL integrated supply chain is analyzed in detail from the aspects of bullwhip effect, inventory level, service level, and so on.

Suggested Citation

  • Guo Li & Xiaojing Wang & Zhaohua Wang, 2013. "System Dynamics Model for VMI&TPL Integrated Supply Chains," Discrete Dynamics in Nature and Society, Hindawi, vol. 2013, pages 1-17, November.
    • Handle: RePEc:hin:jnddns:178713
    DOI: 10.1155/2013/178713
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