The Behavior of Procurement Process as Described by Using System Dynamics Methodology

Abstract

System dynamics methodology has been used in many fields of study which include supply chain, project management and performance, and procurement process. The said methodology enables the researchers to identify and study the impact of the variables or factors on the outcome of the model they developed. In this paper, we showed the use of system dynamics methodology in studying the behavior of procurement process that is totally different from those mentioned in previous studies. By using a typical procurement process employed by a telecommunication company as a case study, we proposed a new one (i.e., procurement process) and developed a procurement model where we discovered that the number of days involved in completing the whole procurement process depends heavily upon the scenarios we created (especially those that exceed two months), and suggested future research undertakings.