Innovation in combining theory of constraints thinking process with system dynamics (A case study : supply chain management )
Subject Areas :mehdi ghazanfari 1 , حسين محمدي 2 *
1 -
2 - University of Science and Technology
Keywords: Theory of constraints System Dynamics Thinking process Evaporating clouds Causal loop diagram,
Abstract :
Theory of Constraints is a kind of management philosophy that uses a systemic approach for understanding and analyzing the whole system. With this attitude identifying and removing the limitations (contradiction or problem that can limit the output of the system) in a systematic process of change is possible. The tools that the theory of constraints uses for identifying, removing and transferring from current adverse conditions to future desirable conditions, is called the thinking process tools. But always there is this need that the effect of various factors on each other in the process is investigated as a feedback loop and in long term. Thus the system dynamics methodology can be used as a complementary tool to this. In fact, This paper aims to describe show to integrate theory of constraints and system dynamics according to their assumptions and their philosophical foundation. To explain how to use these two intersect methods, the problem of inventory management in SCM, which today is known of the challenges, is used. The results show that the combination of these two approaches in terms of theoretical foundation, offer good supplement to understand the problem .