A system dynamics approach of a laptop manufacturing supply chain operation simulation modelling using AnyLogic

This paper provides a dynamics approach of a laptop manufacturing supply chain operation simulation modelling mechanism to improve the manufacturing process. This research paper studies and examines the impact of effective supply chain management on business performance and overall profitability. Using a laptop manufacturing case study and simulation modelling using a system dynamics approach, this research utilizes AnyLogic simulation software to optimize supply chain operations. The hybrid method combines agent-based simulations with system dynamics diagrams encompassing causal loops and stock-flow models. The methodology of this research is divided into two phases, firstly by developing the supply chain optimization in Excel that encompasses monthly demand forecasts, production planning, inventory management, and overall profit estimation. Second phase of the research is conducted by developing a system dynamics model in AnyLogic which include the creation of causal loop diagram and stock-flow diagram. Through verification and validation processes, this study refines a throughput-based production model, integrating factors like supply, demand, productivity, and various interactions such as employee dynamics, transportation, stock management, and considering financial modelling. A supporting research verification is done by carrying out experimental designs using sensitivity analysis scenarios to obtain knowledge on the dynamic behaviours and impacts to one another of the supply chain operational elements.