Research on the Risk of SCM Based on System Dynamics

In this paper, we introduce the definition of SCM, the benefit of SCM, the application of SCM. Implementing SCM can make companies cut down expenses and raise efficiency. However, those companies which have implemented SCM have not gotten the anticipated benefit. The reason is that implementing SCM has risk, which comes from uncertainty. It is a new subject that the companies face to implement SCM by taking strategic and tactical measure to prevent from risk. here, we set up model about adopting SCM system by system dynamics methods when facing the risk of SCM.