This study presents a system dynamics framework to model the Information Technology Institute (ITI) e-material supply chain as a case study of digital product supply chain. This e-material supply chain serves a foundation of providing e-learning programs. The aim of this study is to understand the dynamic structure of this e-material supply chain and hence suggest and evaluate possible policies to enhance its current performance. The first section is an overview of the e-material supply chain. The second defines the problem with the ITI e-material supply chain. The third section is for literature review. The fourth describes the model and the fifth discuss the model behavior. A list of suggested policies is evaluated to increase the e-material supply chain performance and decrease the associated costs in the sixth section. In the last section we conclude.