Abstract
This article presents the objectives and results of a collective research project carried out within the CEREDE committee of the French Order of Chartered Accountants on inventory and supply management as a logistical base of the firm. Drawing on J.W. Forrester's system dynamics and industrial dynamics, the author develops a simulation model named "DYN-STOCKS" to explain the cash-flow variations arising from the operating cycle of a trading enterprise. The first part examines the problems posed by inventory management and enterprise modeling, distinguishing administrative organization, valuation, and decision-making. The second part introduces the DYN-STOCKS model, which represents the firm and its commercial partners (clients, suppliers) through flow diagrams capturing physical, order and information flows, and which accommodates algebraic, stochastic and logical relations. It offers decision-makers a graphical representation of stock levels, liquidity, supplier debts, client receivables and working-capital needs, and underlines the contribution of computing tools.
Recommended Citation
El Moukhtari, Ahmed
(1990)
"Enterprise Modeling: The "DYN-STOCKS" Example — System Dynamics Applied to Inventory Management,"
Revue Marocaine de Droit, d'Economie et de Gestion (Moroccan Journal of Law, Economics and Management): Vol. 9:
Iss.
2, Article 7.
https://doi.org/10.66499/2665-7112.1635
Available at:
https://scholarhub.univh2c.ma/remadeg/vol9/iss2/7
DOI
10.66499/2665-7112.1635