wine chain in Argentina: influence of the Production- Consumption dynamics.

ZAMORA, M. C.; MENDEZ ACOSTA, C. M.; GOLDNER, M. C.

New York

Conferencia; The 21st International Conference of The System Dynamics Society.; 2003

ABSTRACT This study reports on the main structural details of the wine chain, with the aim of identify the production/consumption dynamics. The causal diagram integrates structural elements of Vineyard, Cellar (elaboration of wines), Sale/Shipments, Demand/Consumers and Price. The influence of grape price modifies the dynamic going from a balancing loop to a reinforcing loop. We detect an important delay between the Demand and Sale giving place to a chain break which is due to the distance from real behavior. The information comes too late to advance in the changes and the value put on a product by the consumers depends on the degree of product-information that is available to them. Using system dynamics we will be elaborated a model that will pick up the operation of the supply chain, feedback and non-lineal relationships to explain the coordination mechanisms among the different actors and we will help the chain to be able to work more coordinately.