Supply-demand Joint Inventory - A System Dynamics Model

Based on the general process of supply chain management, this paper discusses the differences between joint inventory supply chain management and the general inventory supply chain management. Through establishing a system dynamics model, we make quantitative analysis of the key parameters of the supply chain, studying the impact of bottlenecks and the bullwhip effect on the whole supply chain, and provide reasonable theoretical support for enterprises to develop, improve supply chain management. The study shows that: (1) the increase of T1 (the order time of raw material) not only can improve the stability of the system, but also can reduce the average inventory, (2) in the case of other parameters being fixed, there exists a critical value B. When T1 <; B, the increase of T2 (the time of raw material from warehouse to production line) can only change the average products inventory, but can not change the stability of the system, when T1 >; B, with the increase of T2, PQ (products inventory) can be changed from attenuation vibration to spreading vibration, and then to attenuation vibration, (3) the decrease of MQE (the expected inventory of raw material) not only can improve the stability of the system, but also can reduce the average inventory, and improve the use rate of the funds of the system.