Title: Dynamic analysis of a global supply chain using system dynamics approach

Authors: Balan Sundarakani, Prem Vrat, Pradeep Kumar

Addresses: Faculty of Business and Management, University of Wollongong in Dubai, Block 14, Room 123, Knowledge Village, Dubai, UAE. ' Management Development Institute, Mehrauli Road, Sukhrali, Gurgaon, 122007 India. ' Department of Mechanical & Industrial Engineering, Indian Institute of Technology Roorkee, Roorkee – 247667, India

Abstract: Supply chain management (SCM) plays a vital role in the growth of the industry, survival in the market, in the production rate and the dynamic interaction among the suppliers and customers. This paper analyses a supply chain model and the dynamic interaction between its variables using system dynamic approach. A causal loop diagram has been developed to identify the relationship between the variables of supply chain system. Under different delay conditions, the policy experimentation is carried out considering various global economies and their degree of development. The model results have been discussed and validated based on the questionnaire results. A detailed sensitivity test is carried out to examine the robustness of the model. The paper has addressed many important issues related to demand, delay time, inventory, GDP growth, SCMI and degree of development of India and their implications are useful in devising strategic policy and decision making scenario of India|s new liberalised economy.

Keywords: supply chain management index; system dynamics; causal relationships; automobile industry; global supply chains; production rates; dynamic interaction; suppliers; causal loop diagrams; variables; delay conditions; global economies; sensitivity tests; robustness; demand; delay times; inventories; GDP growth; gross domestic product; SCMI; industrial development; India; liberalised economy; customer relationship management; e-CRM; electronic CRM; SCM; decision making; multivariate techniques; customer services.

DOI: 10.1504/IJECRM.2010.036183

International Journal of Electronic Customer Relationship Management, 2010 Vol.4 No.4, pp.340 - 358

Published online: 27 Oct 2010 *

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