Understanding and Managing the Intrinsic Dynamics of Supply Chains

Abstract

Both academically and practically, one of the most interesting aspects of supply chains is their intrinsic dynamic behavior. Dynamic interactions can cause unexpected and undesirable results. There are both external and internal reasons for this. Externally, severely competitive environments, consumer behavior and technological innovations are major concerns for supply-chain management. These affect both the structure and behavior of the supply chain and force it to be more flexible and agile. Internally, the supply chain is a multi-echelon system composed of a scratched-together and shifting set of players whose preferences and intentions often differ. This may create and amplify the information distortions, lags, and tricks of business within the supply chain. The combined effects of these external and internal factors make Supply Chain Dynamics (SCD) active and complex. In this chapter, we discuss the influences, mechanisms, and effects of SCD.