Implementation of system dynamic simulation method to optimize profit in supply chain network of vegetable product

Abstract

Abstract. Vegetables are categorized as a perishable product, which is a product with short lifespan thus requires proper handling and planning to reduce losses caused by the short lifespan. In order to reduce the losses, coordination among the players in the supply chain is required. On the other hand, the decision in the supply chain of vegetables and other farming products in the traditional market of developing country is independent among the players. This research is conducted by using System Dynamic Simulation method to develop model and scenario by coordinating the supply quantity amongst players in the supply chain. The scenarios are developed based on newsboy inventory model. This study aims to compare scenarios combining tiers involved in coordination program. The result shows that coordination in supply chain increases total supply chain profit, although there will always be players who experienced decrements in profit. The scenario of coordination among the farmer, the distributor, and the wholesaler resulted in the highest increase in total supply chain profit compared to other coordination scenarios, with an increased value of 10.49%.

Maximising profit by waste reduction in postharvest Supply Chain of tomato

“…To represent these activities in a dynamic model the need for numerous parameters that govern them was necessary. Based on the literature survey by Tama et al. (2018) and the opinions of the experts, various parameters that play an important role in tomato SC were identified and categorised (Table 1).…”

“…The former allows comprehending the interconnectedness of the entities within the system while the latter augments this through the causal links between variables with polarities for each that indicate the behaviour upon alteration of either of them. SD approach has been employed by the researchers for different aspects of the food SC like investigating the effect of lead time and demand fluctuations on the performance (Kumar and Nigmatullin, 2011), comparing the three operational modes of Agricultural SC in China (Liu et al, 2016), comparing the profit gained by players upon coordination across multiple levels of the network (Tama et al, 2018), explaining the dynamics based on the relationships defined between the variables (Jayalath and Perera, 2021), etc.…”

“…SD approach has been employed by the researchers for different aspects of the food SC like investigating the effect of lead time and demand fluctuations on the performance (Kumar and Nigmatullin, 2011), comparing the three operational modes of Agricultural SC in China (Liu et al. , 2016), comparing the profit gained by players upon coordination across multiple levels of the network (Tama et al. , 2018), explaining the dynamics based on the relationships defined between the variables (Jayalath and Perera, 2021), etc.…”

Application of System-Dynamic Modeling to Improve Distribution Logistics Processes in the Supply Chain

“…The methodology of the system-dynamic modeling is widely used in various fields of activity. Examples of the application of system dynamics can serve as the work of Sterman [9] -in building a car leasing strategy, Mutanov et al [36] -in making investment decisions, Uehara et al [37] -in the study and modeling of ecological and economic systems, Ivanov et al [19] in the modeling and analysis of the supply chain, Tama et al [38] -to optimize profits in the network of supplies of vegetable products and many others.…”

A System Dynamics Approach to Comparative Analysis of Biomass Supply Chain Coordination Strategies

“…In case of supply chain coordination, an SD approach could be used to investigate the long-term and dynamic complexity coordination mechanisms [26,31]. SD simulation modeling has also been established for improving information sharing as a means of improving coordination among supply chain members and enhancing a participatory decision-making process [32,33].…”