A Dynamic Simulation on the Effectiveness of Return Policy in a Capacitated Two-echelon Supply Chain

공급능력제약이 존재하는 2단계 공급체인에서 반품정책의 효과성에 대한 동적 시뮬레이션

This paper analysed the impact of return policy as a coordination mechanism for decentralized supply chain with one capacitated supplier and two competing retailers under random demand distribution. In this study, Shortage gaming also considered to reflect a competing environment of two retailers. System dynamics approach was used to model the baseline two echelon supply chain and return policy on it. Given each of 4 experiment settings being used for 100 simulations with different random seeds, 400 random samples were used in a t-test. The result show that return policy significantly enhance the supply chain profits and fillrates. The analysis suggest that the supply chain performance can be build up by implementing a return policy even though under consideration of a capacitated supplier and competing retailers.