Simulation study using system dynamics for a CONWIP-controlled lamp supply chain

Abstract

Production inventory control is one of the most important elements of manufacturing logistics. CONstant Work In Process (CONWIP), which is a hybrid of push and pull type systems, offers an effective approach to supply chain (SC) management. The study of CONWIP is very often conducted with detailed modeling and mathematical analysis, and is not appropriate for supporting decisions from a managerial or macro perspective. In this paper, the authors present an alternative analysis of CONWIP at an aggregate level, which is appropriate to the decision-making about the SC. The model is simulated using system dynamics (SD). The implementation of this model is described using an example from the lamp manufacturing industry in mainland China. The method and its results are illustrated with a lamp manufacturing SC, which indicates that SD can be used to analyze and understand the CONWIP approach to achieve higher productivity and better performance. Moreover, SD is more suitable for simulation analyses of the SC system.