A System Dynamics Model to Evaluate the LARG Supply Chain Elements in the Automotive Industry

Journal of Systems Thinking in Practice

دوره 3، شماره 4 - شماره پیاپی 11، اسفند 2024، صفحه 102-131   

نوع مقاله: Research Article

شناسه دیجیتال (DOI): 10.22067/jstinp.2024.87456.1098

نویسندگان

Nima Saberifard؛ Mahdi Homayounfar^* ؛ Mehdi Fadaei؛ Mohammad Taleghani

Department of Industrial Management, Rasht Branch, Islamic Azad University, Rasht, Iran.

چکیده

The automotive industry is highly competitive, requiring robust supply chains to secure a strategic advantage. This study uses the Lean, Agile, Resilient, and Green (LARG) paradigms to evaluate supply chain performance in the automotive sector. This article developed a comprehensive system dynamics model to analyze these paradigms, incorporating key elements and their interactions within the supply chain. The model simulated eight scenarios to assess the impact of different strategies on supply chain performance. Research findings highlight that enhancing supply chain efficiency leads to the most significant increase in income, underscoring the importance of optimizing processes and reducing costs. Improving process flexibility emerged as the second most impactful strategy, enabling quicker adaptation to market changes and customer demands. Optimizing the flow of value and added value created also proved crucial, streamlining processes and reducing waste to enhance profitability. This research provides actionable insights for automotive industry stakeholders. Companies can substantially improve supply chain performance by focusing on efficiency, flexibility, and value flow. The study emphasizes the practical application of the LARG paradigms, offering a holistic framework for supply chain management in the automotive sector. In summary, the research system dynamics model demonstrates the critical role of LARG elements in driving supply chain success. This approach enables automotive companies to strategically enhance their supply chains, ensuring competitiveness in a dynamic market environment. The results offer valuable guidance for implementing effective supply chain strategies, paving the way for sustained profitability and growth.

کلیدواژه‌ها

Supply chain؛ System dynamics, Automotive industry, LARG paradigms

مراجع

Akbarzadeh, Z., Safaei Ghadikolaei, A., Madhoushi, M., and Aghajani, H. 2019. A Hybrid Fuzzy Multi-Criteria Decision-Making Model Based on Fuzzy DEMATEL with Fuzzy Analytical Network Process and Interpretative Structural Model for Prioritizing LARG Supply Chain Practices, International Journal of Engineering, 32(3), pp. 413-423. doi:10.5829/ije.2019.32.03c.09.

Atefi, M.R., Radfar, R., and Asgharizadeh, F. 2021. Presenting a dynamic model to evaluate the extent of balanced performance of a supply chain. Industrial Management Perspectives, 11(4), pp. 253-290.

Atefi, M.R., Radfar, R. and Asgharizadeh, E., 2022. Developing a Balanced Scorecard Model for LARG Supply Chain Evaluation: A Dynamic Approach. Industrial Management Studies, 20(64), pp.63-93. doi:10.22054/JIMS.2022.55469.2632.

Divsalar, M., Ahmadi, M. and Nemati, Y., 2020. A SCOR-based model to evaluate LARG supply chain performance using a hybrid MADM method. Ieee transactions on engineering management, 69(4), pp.1101-1120. doi:10.1109/TEM.2020.2974030.

Dubey, R., Altay, N., Gunasekaran, A., Blome, C., Papadopoulos, T. and Childe, S.J., 2018. Supply chain agility, adaptability and alignment: empirical evidence from the Indian auto components industry. International Journal of Operations & Production Management, 38(1), pp.129-148. doi:10.1108/IJOPM-04-2016-0173.

Homayounfar, M., Gudarzvand Chegini, M., and Daneshvar, A. 2018. Prioritization of Green Supply Chain Suppliers Using a hybrid Fuzzy Multi-Criteria Decision Making approach, Journal of Operations Research in its Applications. 15(57), pp. 41-61. http://dorl.net/dor/20.1001.1.22517286.2018.15.2.5.9. [in Persian].

Izadyar, M., Toloie Eshlaghy, A., Agha Gholizadeh Sayar, A.R. and Mehri, Z., 2021. Developing a Model for Sustainability Assessment in LARG Supply Chains using System‎ Dynamics‎‎‎. International Journal of Industrial Mathematics, 13(2), pp.181-198.

Izadyar, M., Toloie-Eshlaghy, A. and Seyed Hosseini, S.M., 2020. A model of sustainability performance assessment of LARG supply chain management practices in automotive supply chain using system dynamics. Industrial Management Journal, 12(1), pp.111-142. https://doi.org/10.22059/imj.2020.281292.1007594. [in Persian].

Jakhar, S.K., Rathore, H. and Mangla, S.K., 2018. Is lean synergistic with sustainable supply chain? An empirical investigation from emerging economy. Resources, Conservation and Recycling, 139, pp.262-269. https://doi.org/10.1016/j.resconrec.2018.08.019.

Kamali Chirani, F. and Homayounfar, M., 2023. Investigating the Factors Affecting the Resilience of Startups in Iran During the COVID 19 Pandemic Using Thematic Analysis. Disaster Prevention and Management Knowledge (quarterly), 13(3), pp.356-373. http://dx.doi.org/10.32598/DMKP.13.3.498.2. [in Persian].

Karmaker, C.L., Bari, A.M., Anam, M.Z., Ahmed, T., Ali, S.M., de Jesus Pacheco, D.A. and Moktadir, M.A., 2023. Industry 5.0 challenges for post-pandemic supply chain sustainability in an emerging economy. International Journal of Production Economics, 258, p.108806. https://doi.org/10.1016/j.ijpe.2023.108806.

Lotfi, R., Sheikhi, Z., Amra, M., AliBakhshi, M. and Weber, G.W., 2024. Robust optimization of risk-aware, resilient and sustainable closed-loop supply chain network design with Lagrange relaxation and fix-and-optimize. International Journal of Logistics Research and Applications, 27(5), pp.705-745. https://doi.org/10.1080/13675567.2021.2017418.

Rekabi, S., Garjan, H.S., Goodarzian, F., Pamucar, D. and Kumar, A., 2024. Designing a responsive-sustainable-resilient blood supply chain network considering congestion by linear regression method. Expert Systems with Applications, 245, p.122976. https://doi.org/10.1016/j.eswa.2023.122976.

Saberifard, N., Homayounfar, M., Fadaei, M. and Taleghani, M., 2023. Designing an integrated model to evaluate and select lean and agile suppliers to the automotive industry with a combined fuzzy Delphi, SWARA and ARAS approach. Journal of Executive Management, 15(29), pp.201-229. https://doi.org/10.22080/jem.2022.22787.3681. [in Persian].

Sadeghi Moghadam, M.R., Hosseini Dehshiri, S.J., Rajabi Kafshgar, F.Z. and Sinaei, S.S., 2021. Utilization of intuitive fuzzy WASPAS method with interval values to evaluation of reverse logistics implementation actions in the LARG supply chain. Journal of Industrial Management Perspective, 11(3), pp.215-242. https://doi.org/10.52547/jimp.11.3.215. [in Persian].

Salahi, F., Daneshvar, A., Homayounfar, M. and Pourghader Chobar, A., 2023. Presenting an integrated model for production planning and preventive maintenance scheduling considering uncertainty of parameters and disruption of facilities. Journal of Industrial Management Perspective, 13(1), pp.105-39. https://doi.org/10.48308/jimp.13.1.105.

Shen, J., Shi, J., Gao, L., Zhang, Q. and Zhu, K., 2023. Uncertain green product supply chain with government intervention. Mathematics and Computers in Simulation, 208, pp.136-156. https://doi.org/10.1016/j.matcom.2023.01.022.

Sonar, H., Gunasekaran, A., Agrawal, S. and Roy, M., 2022. Role of lean, agile, resilient, green, and sustainable paradigm in supplier selection. Cleaner Logistics and Supply Chain, 4, p.100059. https://doi.org/10.1016/j.clscn.2022.100059.

Soufi, M., Fadaei, M., Homayounfar, M., Gheibdoust, H. and Rezaee Kelidbari, H. 2023. Evaluating the drivers of green supply chain management adoption in Iran's construction industry. Management of Environmental Quality, (In press). https://doi.org/10.1108/MEQ-04-2022-0105.

Uddin, M.B., 2022. The effect of strategic commitment and supply chain collaboration on operational and innovation performance. IIMB management review, 34(4), pp.364-377. https://doi.org/10.1016/j.iimb.2022.12.002.

Tavakol, P., Nahavandi, B. and Homayounfar, M., 2023. Analyzing the Drivers of Bullwhip Effect in Pharmaceutical Industry’s Supply Chain. Journal of System Management, 9(1), pp.97-117. https://doi.org/10.30495/jsm.2022.1966147.1691.

Vergara, J.I.T., Martínez, J.A.S. and Salais-Fierro, T.E., 2023. Performance measurement of a Resilient-Sustainable Supply Chain through fuzzy multi-criteria techniques. Computers & Industrial Engineering, 177, p.109059. http://dx.doi.org/10.1016/j.cie.2023.109059.