A Critical Examination of the Application of Systems Dynamics (SD) in Logistics Policy Formulation in SMEs (Small-Medium Enterprises) of India

Any sound application of SD-tools in the SME-sector could well be made through SD-Modeling by effectively implementing a properly chalked out research-design. In the given context of SMEs, high-order modeling-product of systems dynamics (SD) depicting process chains of inbound and outbound logistics that applies in many different settings would be of immense applicability. Such descriptive model is equivalent to a high-order, non-linear, differential equation. The Model would combine cases with dynamic simulation applicable to a variety of SME-businesses. Hence, such studies, by covering good number of descriptive cases providing aggregate representation of SME-businesses would effectively cover majority of the situations that managers ordinarily encounter which are applicable to a variety of businesses and policy formulation exercises related with marketing logistics in the sector. Such user-parameterized generic model may be the only way of making the benefits of SD modeling available to SMEs. The main goal of doing this would be to build a decision support handbook applicable to the largest number of cases and companies possible. Field research has also shown that generic parameterisable simulations can challenge mental models and enhance confidence as a firm faces major change