Developing the LARG-Effective Supply Chain Model Using a System Dynamics Approach

Nowdays, supply chain specialists are looking for the integrated development of the supply chain model in order to increase the competitiveness, effectiveness and reduce the problems in the supply chain. They always seek to identify and develop this process so that they can cover more aspects of the chain. Adding effectiveness indicators along with LARG indicators and using the basics of the dynamic system to improve the efficiency of the supply chain is one of the innovations of this study. At first, by using research literature and studies, 12 headings of indicators were selected as LARG-E indicators. Then, with the Fuzzy Delphi method, the relationships and importance of each of these components were determined, and more important variables were modeled for further investigation. With using the concepts of dynamic systems, causal loops were drawn. Then, to check the function of the model, dynamic hypotheses were developed with the opinion of experts. In the next step, the flow diagram of the model and also the validation tests of the proposed model were done. Finally, by examining the outputs obtained from the proposed scenarios, it was found that most of variables have better behavior in LARG-E approach.