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Value chain modelling using system dynamics

Thomas Speller, Luis Rabelo and Albert Jones

International Journal of Manufacturing Technology and Management, 2007, vol. 11, issue 2, 135-156

Abstract: We consider a new type of value chain that includes both production and service capabilities for existing product lines and that incorporates new product and service development. In this paper we model this value chain using system dynamics. The essential variables and causal relationships, which are expressed as linear differential equations among these variables, are also presented. We discuss the importance of eigenvalue analysis of the associated coefficient matrix in predicting and understanding the evolutionary behaviour of the system. A case study from the aerospace industry is introduced to validate the different developments.

Keywords: growth; new product development; NPD; strategic business units; strategic SCM; supply chain management; system dynamics; value chain modelling; new service development; aerospace industry. (search for similar items in EconPapers)
Date: 2007
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