Abstract
With the development of economy and information technology, the competition between enterprises has already entered the period of “competition between supply chains”. It is more and more impossible to satisfy the customer personalized and diversified demands with reducing the total cost. Using the system engineering concept, the system dynamics models of traditional supply chain and leagile supply chain are built in this paper. Through comparing the simulation results of these two kinds of supply chain, we show the advantages of leagile supply chain. The results hold that shorten the length of supply chain, share the information, cooperation and production delay can effectively weaken the bullwhip effect. By running the simulation model, we can determine the relationship among effect factors of leagile supply chain and observe the visual dynamic changes of supply chain. Thus, this result can provide decision supports to enterprises’ leagile supply chain.
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