System dynamics modelling for the chemical supply chain – A case study

Khan, Azeen Shahna and Hebbar, Sunith (2021) System dynamics modelling for the chemical supply chain – A case study. International Journal Services and Operations Management, 38 (3). pp. 441-465. ISSN 1744-2370

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The chemical supply chain constitutes all the activities from sourcing of raw materials to the delivery of goods to customers within, or across national boundaries. The study was conducted in ABC Ltd. company which manufactures chemicals like methanol and benzene. The firm was concerned about significant risks in SC like uncertain demands and orders. Thus, a system dynamics model was developed and simulated for the SC under changing demand levels, raw material shipment time, and cycle time. The results revealed that the increase in shipment time did not affect the sales, but, the RM inventory increased. Thus, it was advised to change the ordering pattern which minimises RM inventory. The results also revealed the existence of the bullwhip effect and identified an ideal cycle time which stabilises the system. An optimum requirement of transportation resources, labour and trucks, were determined. Furthermore, appropriate suggestions were made which may help in improving the SC performance

Item Type: Article
Uncontrolled Keywords: chemical supply chain; CSC; system dynamics; supply chain risk; demand uncertainty; backlog level; cycle time; bullwhip effect.
Subjects: Engineering > MIT Manipal > Chemical
Engineering > MIT Manipal > Humanities and Management
Depositing User: MIT Library
Date Deposited: 20 Sep 2021 04:02
Last Modified: 20 Sep 2021 04:02

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