Title: Value chain modelling using system dynamics

Authors: Thomas Speller, Luis Rabelo, Albert Jones

Addresses: Massachusetts Institute of Technology, Engineering Systems Division, Building E40-248, 77 Massachusetts Avenue, Cambridge, Massachusetts 02139-4307, USA. ' University of Central Florida, 4000 Central Florida Blvd. Industrial Engineering and Management Systems, Eng. No.2, University of Central Florida, Orlando, Florida 32816, USA. ' National Institute of Standards and Technology, Manufacturing Systems Integration Division, Gaithersburg, Maryland 20899, USA

Abstract: We consider a new type of value chain that includes both production and service capabilities for existing product lines and that incorporates new product and service development. In this paper we model this value chain using system dynamics. The essential variables and causal relationships, which are expressed as linear differential equations among these variables, are also presented. We discuss the importance of eigenvalue analysis of the associated coefficient matrix in predicting and understanding the evolutionary behaviour of the system. A case study from the aerospace industry is introduced to validate the different developments.

Keywords: growth; new product development; NPD; strategic business units; strategic SCM; supply chain management; system dynamics; value chain modelling; new service development; aerospace industry.

DOI: 10.1504/IJMTM.2007.013182

International Journal of Manufacturing Technology and Management, 2007 Vol.11 No.2, pp.135 - 156

Published online: 11 Apr 2007 *

Full-text access for editors Access for subscribers Purchase this article Comment on this article