Dynamic Modeling and Simulation on Ordering Strategy of Five-Stage Supply Chain

Abstract

In order to describe complexity and dynamics of supply chain network, the simulation model of a five-stage complex supply chain networks was built firstly in this paper. Second, based on the model, comparative simulation towards the inventory level and the bullwhip effect under economic order quantity (EOQ) strategy and the minimum and maximum (s, S) strategy were carried out. Simulation result shows that, enterprises in different stages with different ordering strategies will have significant effect on supply chain performance. Supply chain enterprises in various stages should adopt reasonable ordering strategy in lights of their own characteristics.