A System Dynamics model for joint upstream and downstream partner selection in a supply chain consisting of suppliers and retailers

Abstract Firms no longer compete as autonomous entities and prefer to joinin a supply chain alliance to take advantage of highly competitive business situation. Supply chain coordination has a greatimpact on Firm’sstrategic partnering and success in competitive business environment. In this paper, we propose a system dynamics simulation model for strategic partner selection in supply chain. Our model addresses a supply chain including suppliers and retailers. It presents an approach to simulateeach supplier’s (retailers) tendency to select downstream (upstream) partner selection and the impact of their policies in the whole supply chain.