The concept of supply chain management has today become a tool that both manufacturing and service organizations have been using to help win greater market share. Small-medium enterprises have found it difficult to measure their performance due to the complex external environment. In this paper, analysis of a single case study of an SME through survey and interview is done in order to measure the performance of its responsive supply chain. A system dynamics modeling approach is used to model the variables that have greater influence on the performance system through the development of a causal loop and stock and flow diagrams. Comparisons of the experimental results shows that the domestic purchase of the raw material and quality efficiency will help to reduce the future lead-time and import requirements which will help the company to achieve product availability which is the main competitive strategy of a responsive supply chain.
System Dynamics Approach to Supply Chain Performance Measurement in Small and Medium Enterprise
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