Designing an Allocation Model by Using System Dynamics Approach (Case Study: Dairy Factory

Purpose: Given the increasing demand for dairy products and price fluctuations in the market in Iran, factories are looking for the proper resource allocation method to produce each dairy product. Therefore, in this paper, by using the system dynamics approach, we analyze the dynamics of production...

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Bibliographic Details
Main Author: Ali Haji Gholam Saryazdi
Format: Article
Language:fas
Published: Ayandegan Institute of Higher Education, Tonekabon, 2022-08-01
Series:مدیریت نوآوری و راهبردهای عملیاتی
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Online Access:http://www.journal-imos.ir/article_140804_3766958b6a0bf100691ed1a39951f0fb.pdf
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Summary:Purpose: Given the increasing demand for dairy products and price fluctuations in the market in Iran, factories are looking for the proper resource allocation method to produce each dairy product. Therefore, in this paper, by using the system dynamics approach, we analyze the dynamics of production and allocation of resources in a dairy factory.Methodology: Using the system dynamics approach, we analyze the dynamics of production and allocation of resources in a dairy factory.Findings: The results showed that among the variables affecting production and allocation in the dairy processing plant, the price variable is one of the most influential and essential policy variables. On the other hand, two price and fixed allocation methods were identified for input sources (raw milk) and production capacity. The modelling results showed that price-based methods are more efficient than other methods. In fixed allocation methods - allocation capacity and price allocation - allocation capacity, the amount of production is more than in fixed allocation methods - price capacity and price allocation - price capacity, but the income of products and total factory income is less due to price reduction. In addition, because of the benefits of powdered milk, the factory is moving towards more production than cheese.Originality/Value: This study uses a system dynamics approach to design an allocation model and explain the effects of different policies in the dairy industry.
ISSN:2783-1345
2717-4581