Analyzing the impact of inventory on EV supply chain performance: a system dynamics approach
The widespread transition from Conventional Vehicles (CVs) to Electric Vehicles (EVs) is a multifaceted process that involves numerous influencing factors. The implementation of an effective inventory policy is an essential component of any successful business, as it is directly tied to the value...
Saved in:
Main Author: | |
---|---|
Other Authors: | |
Format: | Thesis-Master by Coursework |
Language: | English |
Published: |
Nanyang Technological University
2023
|
Subjects: | |
Online Access: | https://hdl.handle.net/10356/171845 |
Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
Institution: | Nanyang Technological University |
Language: | English |
Summary: | The widespread transition from Conventional Vehicles (CVs) to Electric Vehicles
(EVs) is a multifaceted process that involves numerous influencing factors. The
implementation of an effective inventory policy is an essential component of any
successful business, as it is directly tied to the value realization of an organization.
Inventory policy serves to maintain balance across various nodes, including
production, transportation, and sales. However, it can be considered an idle resource
that occupies capital. Companies establish inventory to handle unpredictable future
demands, but this leads to several supply chain issues, such as order fulfillment
shortages, high product costs, reduced liquidity, decreased turnover rates, slow
market penetration, and inefficient transition from combustion vehicles to electric
vehicles. Effective control of inventory is necessary to accelerate the adoption of
electric vehicles by integrating operations among different nodes in the supply chain.
This is especially crucial in industries such as the automotive sector with long supply
chains and high capital requirements, where inventory has always been a critical
concern. Therefore, researching effective inventory systems holds both theoretical
and practical significance.
This dissertation utilizes a systems dynamics methodology by choosing the EV
automotive inventory network as its research focus and creating a system dynamics
VI
model to illustrate the intricate inventory system of the EV supply chain network.
Firstly, the overall supply chain structure is analyzed systemically, followed by an
examination of the feedback relationships among different factors within the EV
automotive supply chain. The influential factors are methodically analyzed. The
study establishes a causal relationship model and a stock-flow-feedback model. The
dynamic equations of these models are determined, and appropriate parameters are
assigned. A system dynamics (SD) approach is employed, using the Vensim
simulation tool, to model the dynamics of inventory raw materials, supplier
components, manufacturer inventory, distributor inventory, and retailer inventory.
The objective of this study is to provide a thorough analysis of inventory status at
different nodes within the EV automotive supply chain under varying demand
scenarios. The study aims to clarify the contradictory performance of inventory
fluctuations and assist in making strategic decisions related to optimizing supply-
demand alignment, minimizing EV inventory waste, and promoting EV adoption
from CVs. Ultimately, the dissertation aims to enhance the competitive advantage of
the electric vehicle (EV) automotive industry over conventional vehicles (CVs) and
yield valuable insights into its inventory control system. |
---|