This paper deals with the development of a System Dynamics Model to study the influence of Production cycle time on: Production start rate, Work in progress, Production rate, Distribution inventory, Distribution rate, and Waste rate. The simulation results indicate that Production cycle time has a significant influence on 'Bullwhip Effect' and there may be a need to stretch the Production cycle time and reduce the delays to minimize this effect. Reduction of Bullwhip effect is a constant endeavour in Supply Chain Management (SCM) and this paper is also an attempt in this direction with specific reference to the influence of Production cycle time.
This paper deals with the development of a System Dynamics Model to optimize the stock in production and distribution points of a manufacturing supply chain. The variables of study include production start rate, work in progress, production rate, distribution inventory, distribution rate, and waste rate. The results depict that increase in stock reduces the load on production variables, accordingly suggestions are made to maintain optimum stock at key distribution points.
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