Developing Causal Relationships for CPFR Index: A System Dynamics Simulation Approach

Abstract

Collaborative planning, forecasting and replenishment (CPFR) is one of the collaborative strategies in supply chain management that aims to coordinate the diverse processes of supply chain management. Despite being identified as playing an important role in supply chain performance improvement, the dynamic interactions among its subsystems have not been explored in previous research. This research aims to identify the interactions among effective enablers and the potential impact of each enabler on successful CPFR implementation through the development of a structural model and system dynamics simulation modelling. To reach this goal, significant enablers and results reported in previous research have been explored. The causal relationships among different variables have been analysed using through the application of system dynamics and stock and flow diagrams. A dynamic CPFR model is proposed based on a number of assumptions. The resulting causal loop helps the reader to better understand and learn the dynamic interactions of CPFR subsystems.

Determination of sustainable land resources management key factors in Musi Hydropower Plant Catchment Area of Bengkulu Province

“…Interpretive structural modeling (ISM) is an appropriate method to identify and analyze the relationships and the interacting position among variables [10,11,12]. This method is widely used in various fields to identify variables for effective customer involvement in implementing the green concept in the supply chain and prioritize the identified variables [13].…”

Key elements structure in mangrove ecotourism management of Peropa’ea Protected Forest in North Buton Regency

“…Well-planned tourism could provide economic and political incentives for proper management and conservation and could bring additional benefits to local communities and regional economies [4] The Interpretative Structural Modelling (ISM) method can be used to identify the relationships among specific elements of a system and structure them into a comprehensive systematic model [5], is a process that transforms unclear and poorly articulated mental models of systems into visible, welldefined models useful for many purposes [6]. This is a well-developed methodology for identification and summarizes the interrelated relationships between the specific subject of the problem or issue [7] [8], can identify and analyse the relationships and the interacting position among variables [9,10], used to design structures and determine critical factors for marine ecotourism development [11] to address the top-focused ecotourism virtual communities and dynamic nature of member engagement [12]. The ISM method can complete the development of the hierarchical structure of each element in the program for the present and the future.…”