Application of system dynamic in selection of distribution centers through supply chain

Abstract

Fundamentally implementation and coordination an efficient supply chain strategy might yielded high profitability for each organization and assure itself against unforeseen fluctuations which may happen in the future. This project considered a simulation of the current trend of production in an industry and system dynamic modeling to evalute the candidate location for establishing distribution centers to execute supply chain strategy to reach maximum responsiveness and cost efficient distribution. This research is conducted to evaluate the senarios for distributings finished goods and innovative distribution network for determining the facility location for a factory with high compatibilty with supply chain strategy. As for the result, strategy of the company is to accept senario three as most compatible with the mission and vision of the company, which has the minimum holding and transportation costs, also the second approporiate lead-time for serving the customers