Competitive Analysis And System Modeling Of Business And Production-Distribution Process Based On System Dynamics

In the existing competitive business environment,many factors can effect on firms Stability,but the most significant factors those senior managers’ emphasis are sales incline or decline as per potential and Actual customers in business process cycle.Another,Market outlet sales,Outlet inventory and Market outlet orders integration with production-distribution system with respect to time,and simulate them in dynamic model for smooth order fulfillment,control sales variations and control inventory variations.It is aimed to simulate these factors for industrial manufacturing system specially JIT(Just in Time)strategy manufacturers who try to cut out inventory with the time of being and own self-distribution network to their outlets.In most situations,a manufacturer has a good amount of potential customers who order for the first production line,but unfortunately inventory is not enough to fulfill all orders,therefore back orders lag and lost orders come up.Lost orders will cause effects on market and manufacturer’s market share straightaway,back orders lags will progressively effect on the company’s market share and directly effect a role on supply chain strategies and planning.On the other hand,product item price will cause a vast change on orders that affects directly on profit and revenue generation,and probably the annual expenses and tax will encounter change.This demonstrates the overall supply chain of company in which manufacturer needs to take decisions by following complete network that is possible by this system dynamic modeling.In this thesis,it is tried to simulate all these factors,hence the model is formed of two parts:Customer-oriented Business Process and Production-Distribution System.At existent,manufacturers are challenged with a quickly developing environment that is characterized by Market Outlet Orders,Market Outlet Sales,and Outlet Inventory linked to company production,to resolve the problems with system dynamic tools in uncertain oscillation in performance and take countermeasures.At the same time strategically manufacturers must focus on their sales in respect of Potential Customers and Actual Customers to encounter the changes in performance for incline or decline of business sales and Customer.Manufacturers must be constantly ready to adapt to changes to remain competitive and profitable.Thus,many manufacturers are undergoing customer oriented business process to analyze sales and increase business process flexibility.Consequently,this paper proposes a system dynamics simulation model that conveys the complex relationships between important variables in Customer Oriented Business Process and production-distribution system.For this case simulation is performed at multiple stages for Customer Oriented business process model and also performed multiple testing by adding complex variables in production-distribution system.The resulting analysis is based on results by different models testing with different leveling variables and analyzed the results with discussion.Practitioners or manufactures will obtain a ready-to-use simulation model to make various production-distribution and business process decisions and also policy implication in businesses.