Selected Studies, The Gs Company's Logistics Strategy Based On System Dynamics

Currently, the sales of wine industry in our country are in a relatively open and an extremely competitive environment. The increasingly fierce market competition sets higher demands for wine-marketing enterprises. As driven by competitive advantage and higher profit, wine-marketing enterprises pay increasing attention to the logistics management in the sales process, aiming to obtain a higher profit by reducing logistics costs, elevating logistics benefit, improving the core competitiveness through an appropriate logistics strategy in sales process. Taking wine-marketing enterprise GS as the object of study and system dynamics as the research method, this thesis present a deep and systematic study on the choosing of logistics strategy for GS enterprise in the term of the analysis of logistics costs. The purpose of this research is to find a logistics strategy suitable for the long-term development of GS with the lowest logistics costs.This thesis firstly set forth the theories related to sales logistics and logistics costs. To facilitate its study, the theories involving inventory management and distribution management were introduced briefly; and emphasis was put in the exposition of the principle and method of system dynamics. Furthermore, the feasibility of employing system dynamics to conduct this research was analyzed and proved.With the guide of the theory and modeling method of system dynamics and according to the reciprocal influence among the factors that influence the total inventory cost and total distribution cost, This thesis especially studied the inventory system and distribution system of GS enterprise. the model of system dynamics of the inventory system and distribution system for GS enterprise was established using the modeling software of system dynamics of Vensim. Using the established model, the current logistics strategy of GS enterprise was simulated and analyzed. According to the current situation and development strategy, improvements were made for the current logistics strategy of GS enterprise from sales forecasting, upper control limit of inventory cost and selection of distribution method. The improved logistics strategy was simulated using the established model. A logistics strategy that is suitable for the long-term development of GS was determined through comparative analysis.