A new transshipment policy in cluster supply chains based on system dynamics

South China University of Technology, Guangzhou, Guangzhou, P.R. China

^∗ Corresponding author: yanbo@scut.edu.cn

Received: 27 September 2016
Accepted: 19 March 2017

Abstract

In this paper, the cross-chain inventory emergency supplementary of two single supply chains is investigated to simulate the transshipment of the supply chain network system in the industrial cluster supply chains. We assume that each single supply chain is composed by a manufacturer, a wholesaler and a retailer. Besides, a new transshipment policy based on system dynamics (SD) is proposed in this paper, called the model of the cross-chain inventory transshipment between two enterprises from both the same tier and different tiers. The new proposed model is different from the model of the cross-chain inventory transshipment between two enterprises at the same tier and the model of the cross-chain inventory transshipment between two enterprises at different tiers, which have been researched by previous scholars. Some comparisons are made among the three models. It is proved that the new proposed model can improve the customer satisfaction level (CSL) and lower the total inventory level than the two other models existing currently.