The Inventory Cost of an Engineering Project Supply Chain Based on System Dynamics

Abstract

In order to grasp the main factors of the inventory cost of an engineering project supply chain ,the causal relationship diagrams and system dynamics model of the inventory management of an engineering project supply chain are built according to the actual construction .Then using system dynamics simulation software ,which is vensim , this paper establishes a system dynamics equations and simulates to some factors which affects to the inventory management of an engineering project supply chain , in order to find the factor which effects the system more. Finding this factor can help to the future research to optimize and improve the inventory cost of an engineering project supply chain , which purpose is to reduce inventory levels and total costs of the engineering project supply chain.