Research on two-stage supply chain ordering strategy optimization based on system dynamics

Abstract

This paper constructs a two-stage supply chain ordering model based on system dynamics, and proposes a second exponential smoothing ordering strategy for both supermarket and distribution center. With the goal of minimizing the cost of whole supply chain and the fluctuation of inventory, genetic algorithm is adopted to help improve the model simulation, which can optimize the controllable parameters in the ordering model. Simulation results show that system dynamics can better resolve the optimization problem of complex system in combination with genetic algorithm, and the ordering strategy this paper proposed has a relatively good adaptation for markets with different kinds of traits. © Springer-Verlag Berlin Heidelberg 2013.