Stability of supply chain: A system dynamics approach

To increase the stability of supply chain system, a system dynamics (SD) model was proposed. The model was provided with two typical delay modes: fist-order exponential delay and pure time delay. Then the concept of stability and stability criterion were defined. With simulation, stability borders with different meanings were confirmed, which integrated the results derived from different research methods. It is concluded that the stability of inventory control system is mainly decided by the features of feedback systems, the subjective decision and environment take their effects based on the feedback systems, and information sharing is propitious to increase the stability and weaken bullwhip effect of supply chain system.