Study on the Supply Chain Inventory under Electronic Commerce Base on System Dynamics

Base on system dynamics, this paper use the software I think to build two molds, they are traditional two-lever supply chain and electronic commerce two-lever supply chain. In the two molds, we use arrays to simulate a single inventory center ships out to multiple retailers. And some traditional constraints on Dispatch Centers are loosened, such as unlimited capacity. After the simulation, We compared the two molds from multi-angle and confirmed that electronic commerce two-lever supply chain outperforms the traditional two-lever supply chain such as low inventory, bullwhip weakened.