Abstract:

The uncertainty of user requirements is main source of order risks between suppliers and retailers. Basedon the theoretical analysis of the flrctuation variance of supply chain demand information, the garment supply chaim system dynamic model was established, and Vensim PLE was utilized to perform simulation experiments on two-stage conventional garment rupply chain and vendor managed inventory （VMI）garment supply chain models. The simulation results show that in the VMI garment supply chain mode, the order fluctuations and the bullwhip effect are remarkably improved, which further proves that the order lead time is relevant to all levels of inventory fluctuations. The VMI supply chain can significantly weaken the bullwhip effect, and improve the capability of each node of risk resistance of manufacturers. The simulation resuly is consistent with the analytic result of the theoretical model.

Key words: supply chain, garment, system dynamics, Bullwhip effect, wendor managed inventory, simulation