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Research on management of supply chain based on System Dynamic

This paper describes the application of System Dynamic in supply chain management's area. Analyzing the systematization and dynamics' character on Supply Chain, it shows feasibility of applying System Dynamic and research method of Supply Chain System based on System Dynamic. Through analyzing SD model it showed that human resources and fixed costs perturbed lowly for performance, but fluctuation of demand effects superiorly to finance performance. This Dynamic location method melts SD model, therefore, which can deal with some soft variables, at the same time overcome limitation of traditional statistical method. The paper summarizes system dynamic conclusion for supply chain management issue and bonding point of the two, and sums up the existing study based on SD model application.