Simulation Analysis Of JMI For Clothing Enterprise Based On System Dynamics

With the deepening of economic globalization, and increasinglysignificant international trend, the company’s market competition is nolonger just reflecting in the dominant factors such as product, price, etc.,but the overall value chain and supply chain competition. Compared totraditional industrial enterprises, garment enterprise supply chain paysmore attention on sales forecasting and inventory management, so thesupply chain presents a complex dynamic behavior.In this paper, under the specific context of garment industry, theauthor compares and analyzes traditional inventory management modeland JMI model. The author shows that the total supply chain inventorycost of JMI model is lower than that of the traditional supply chain model.Furthermore, the author uses system dynamics and Vensim PLE software,building the JMI model and traditional inventory management model.Under specific circumstances of garment industry, the author conducts thesimulation analysis. JMI model, in terms of total inventory, supply chainbullwhip effect and total out of stock all have advantage over traditional model. Therefore, for clothing companies, JMI should be applied in orderto reduce overall inventory costs, as well as the bullwhip effect can beimproved.In addition the author further conducts the sensitivity analysis fromindicators of safety stock and order quantity. Through simulation, theauthor finds that, higher joint inventory safety stock can improve bullwhipeffect and supply chain out of stock, but the total supply chain inventorylevel will rise. Improving order quantity can help overcome supply chainout of stock, but the total supply chain inventory levels will rise. For thesupply chain bullwhip effect, simply increasing the order quantity cannotdetermine the impact.