A Model of Systems Dynamics for Physical Flow Analysis in a Distribution Supply Chain

Abstract

This article proposes a model of systems dynamics for the analysis and study of physical flows in a distribution logistics chain. The proposed model is a decision support tool that allows testing several scenarios in order to study the behavior of physical flows within a supply chain depending on the inventory and transport costs and taking into consideration the environmental issues through the integration of a CO2 tax in transport costs. The developed model can be used to analyze various scenarios and perform various “what-if” analyzes, as well as to answer questions about the long-term operation of distribution chains. The results show that logistic decisions and strategies taken at the supply chain level influence inventory and transport costs. They show also that the model is a well decision-support tool for calculating and analyzing transport and inventory costs. We first expose the methodology and the literature review. Next, we present in detail the structure of the model consisting of the causal loops diagram and stock and flow diagram. Finally, we discuss the results of the model.