System Dynamics Modeling of the Relationships between Sustainable Supply Chain Management and Sustainable Development in Industrial Manufacturing Companies
Keywords:
System dynamics , sustainable supply chain management, sustainable development, manufacturing companiesAbstract
Objective: The objective of this study is to investigate and model the relationships between sustainable supply chain management and sustainable economic development in Iranian manufacturing industries using a system dynamics approach.
Methodology: This research applied system dynamics modeling to analyze the structure and behavior of key variables in sustainable supply chains. Key indicators were identified through literature review and expert consultation. The dynamic model was constructed and simulated using Vensim software. Its validity was assessed through structural tests, sensitivity analysis, behavior reproduction, and boundary condition testing. Four policy scenarios were then developed to assess the impact of various strategies on critical system variables.
Findings: The simulation results indicated that reducing production costs, increasing warehouse capacity, and improving transport technologies significantly enhance production output, lower travel costs, and balance inventory levels. Particularly, Scenario 3, focused on reducing the production cost rate, demonstrated the highest positive impact. In contrast, Scenario 4, which simultaneously applied all strategies, led to system inefficiencies due to surplus inventory and diminished output.
Conclusion: The findings highlight that targeted and incremental policies outperform simultaneous comprehensive approaches in optimizing supply chain performance. The proposed model serves as a powerful decision-making tool for industrial managers aiming to align operational efficiency with sustainable development goals.
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Copyright (c) 2025 Mehdi Mahmouodieh, Elmira Mashayekhi Nezamabadi, Hassan Haleh (Author)
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