System Dynamics Modeling of Vendor Managed Inventory for Solar PV Supply Chain
DOI:
https://doi.org/10.32492/nucleus.v5i2.5216Keywords:
System Dynamics, Vendor Managed Inventory, Photovoltaic Supply Chain, Inventory Management, Solar PVAbstract
Effective inventory management is essential to maintain component availability and operational reliability in photovoltaic (PV) systems. However, conventional inventory practices are generally reactive, leading to procurement delays, stock shortages, and maintenance downtime. This study proposes a System Dynamics-based Vendor Managed Inventory (VMI) model to improve inventory management in the PV supply chain using the grid-connected photovoltaic system at Universitas Pamulang as a case study. The model integrates inventory level, procurement lead time, maintenance demand, market readiness, technology factors, and operational cost through Causal Loop Diagrams (CLDs) and Stock and Flow Diagrams (SFDs). Two scenarios, namely the existing inventory policy and the proposed VMI strategy, were evaluated under identical operational parameters. Model verification and validation confirmed that the developed model adequately represents the operational characteristics of the PV supply chain. The simulation framework demonstrates that the proposed VMI strategy improves inventory visibility, accelerates replenishment decisions, and strengthens coordination between suppliers and maintenance personnel. Therefore, the proposed model provides a practical decision-support tool for improving inventory management and enhancing the operational sustainability of photovoltaic supply chains.
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