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Developing Causal Relationships for CPFR Index: A System Dynamics Simulation Approach

Farhad Panahifar 1, Cathal Heavey 1, Phongpat Sontamino 2, and P. J. Byrne 3
1. Enterprice Research Centre, University of Limerick, Limerick, Ireland
2. Faculty of Engineering Prince of Songkla University (PSU) Korhong, HatYai, Thailand
3. Business School, Dublin City University, Dublin, Ireland

Abstract—Collaborative Planning, Forecasting and Replenishment (CPFR) is one of the collaborative strategies in supply chain management that aims to coordinate the diverse processes of supply chain management. Despite it was identified that CPFR is playing an important role in supply chain performance improvement, the dynamic interactions among its subsystems have not been explored in previous research. This research aims to identify the interactions among effective enablers and the potential impact of each enabler on successful implement CPFR through the development of a structural model and system dynamics simulation modelling. To reach this goal, the significant enablers and results reported in our previous research have been explored. The causal relationships among different variables and stock and flow diagram are then developed by applying system dynamics. A CPFR dynamic model based on a number of assumptions is finally proposed. The resulting casual loop helps the reader to better understand and learn the dynamic interactions of CPFR subsystems.

Index Terms—CPFR implementation, implementation enablers, interpretive structural modelling, system dynamics

Cite: Farhad Panahifar, Cathal Heavey, Phongpat Sontamino, and P. J. Byrne, "Developing Causal Relationships for CPFR Index: A System Dynamics Simulation Approach," Journal of Advanced Management Science, Vol. 4, No. 1, pp. 1-8, January 2016. doi: 10.12720/joams.4.1.1-8
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