Operating Models of Chinese Agricultural Cold Chain Based on System Dynamics

This study aims to establish current main Chinese agricultural-product cold chain (ACC) models and compare the efficiency based on system dynamic analysis. In China, the operating model for ACC falls into three categories, namely, SWR model (wholesaler dominant), SS (supermarket dominant) and SDC (supplier dominant).We analyze the three models’ framework and relevant practices in China, particularly describe detailed flowcharts of SWR model and SS model because SDC model is not yet mature in China. Based on the two models, we apply system dynamics theory to compare the bullwhip effects and relevant inventory level of them under stochastic demand information. Simulation results show that comparing with SWR model, SS model has competitive advantages in lower inventory, less fluctuation and bullwhip effect. Thus agricultural product cold chain driven by retailers (supermarkets) proves to be more efficient and cost-effective.