Abstract for:System dynamics modeling of Locomotive's supply chain networks– Iranian Railways
The recent crisis of sharp rise in the exchange rate and the trade gap in the Middle East, which has had a special impact on creating great obstacles across establishing a sustainable logistics and supply chain management, would be considered in this case study. Accordingly, we would look at the existing supply chain network of a locomotive’s manufacturing Company in Iran to achieve the root cause of the problem in the real world. The main problem that recognized in this case study is fluctuations in demand, which necessarily obscure employing adequate statistical methods. In other words, the effect of the unpredictability in the locomotives’ demand prediction during uncertain environment, on the various layers of the supply chain network investigated to realize effective parameters on optimization locomotive’s supply chain network, and critically analyze relationships between them. This research is predicting for over a 10-year horizon and the result shows the main role of foreign policy decision-making in supply chain management. In order to have a better view of the system and managerial insights, a conceptual model based on the integration technique of the system dynamics method presents.