Document Type : Original Article


System Dynamics Research Group, Imam Javad University College, Yazd, Iran.


Purpose: Given the increasing demand for dairy products and price fluctuations in the market in Iran, factories are looking for the proper resource allocation method to produce each dairy product. Therefore, in this paper, by using the system dynamics approach, we analyze the dynamics of production and allocation of resources in a dairy factory.
Methodology: Using the system dynamics approach, we analyze the dynamics of production and allocation of resources in a dairy factory.
Findings: The results showed that among the variables affecting production and allocation in the dairy processing plant, the price variable is one of the most influential and essential policy variables. On the other hand, two price and fixed allocation methods were identified for input sources (raw milk) and production capacity. The modelling results showed that price-based methods are more efficient than other methods. In fixed allocation methods - allocation capacity and price allocation - allocation capacity, the amount of production is more than in fixed allocation methods - price capacity and price allocation - price capacity, but the income of products and total factory income is less due to price reduction. In addition, because of the benefits of powdered milk, the factory is moving towards more production than cheese.
Originality/Value: This study uses a system dynamics approach to design an allocation model and explain the effects of different policies in the dairy industry.


Alami, m., Aghabalaee, b., Ahmadi, m., & Farzin, s. (2015). Optimum allocation of water resources by using system dynamics. Water engineering, 7(23), 99-110. (In Persian).
Beheshti Nia, M. A., Qasemi, A. & Farrokh Nia, M. (2018). Scheduling of production, transportation, and allocation of orders in the supply chain. Specialized journal of industrial engineering, 50 (2), 191-203. (in Persian)
Chizari, A. H., Shokohi, Z., Salami, H. & Hosseini, S. S. (2015). Existence of consumption habits and empirical demand analysis: a case study of dairy products demand of urban households in Iran. Agricultural economics, 9 (2), 19-35. (In Persian).
Dehghan Rahbar, A., Ismaili Dastjerdipour, A., & Dehmarde, N. (2012). Calculating the types of efficiency and returns to scale in the dairy industry (case study: Kerman province). Quarterly journal of planning and budget, 7 (4), 145-159. (In Persian).
Ehsani, P., Raisi, P., & Raisi, S. (2014). Identifying and ranking the risks of dairy supply chain using structural equation modeling. Quarterly journal of industrial management, 29, 25-38. (In Persian).
Ehsanifar, M., & Rezaei, Z. (2018). Combining the classical linear allocation model with multi-objective linear programming to evaluate the ranking of options. Industrial engineering and sharif management, 1-34(1.2), 129-136. (In Persian).
Forrester, J. W. (1980). Information sources for modeling the national economy. Journal of the American statistical association75(371), 555-566.‏
Friedman, S. (2003). The effects of dynamic decision making on resource allocation: The case of pavement management (Doctoral Dissertation, Worcester Polytechnic Institute). Retrieved from
Gastelum, J. R., Valdes, J. B., & Stewart, S. (2005, December). A system dynamics model to improve water resources allocation in the conchos river. AGU fall meeting abstracts (Vol. 2005, pp. H23B-1429).
Haji Gholam Sarizadi, A. (2019). Dynamics of systems and training of its various software in simple language. Danesh Mandagh Asr Publishing House. (In Persian).
Haji Gholam Sarizadi, A., & Ghavidel, M. (2018). Waste management in a wire and cable company through system dynamics approach. International journal of quality & reliability management, 35(7), 15-32.
Haji Gholam Sarizadi, A., & Manteghi, M. (2018). Testing and validation of group modeling with reference model). Quarterly journal of industrial management, faculty of humanities, sanandaj azad university, 13(44), 29-46. (In Persian).
Haji Gholam Sarizadi, A., Ghatari, A. R. Z., Mashayekhi, A. N., & Hassanzadeh, A. (2021). Crowd model building as a collective decision support system. International journal of decision support systems4(3), 177-216.
Haji Gholam Sarizadi, A., Manteghi, M., & Zare Mehrjerdi, Y. (2013). Dynamic system. Alborz Diamond Publications. (In Persian).
Hiassat, A. (2017). Resource allocation models in healthcare decision making (Ph.D Thesis, University of Waterloo,  Ontario, Canada). Rtrieved from
Hovelynck, J., Dewulf, A., Francois, G., & Taillieu, T. (2010). Interdisciplinary knowledge integration through group model building: recognizing dualities and triadizing the conversation. Environmental science & policy13(7), 582-591.‏
Islamic Republic of Iran Customs. (2020). Retrieved from
Jafar Khan, F., & Yaqubi, S. (2017). Presenting a robust mathematical model and innovative solution algorithm for the integrated production-routing-inventory problem of perishable products with lateral transfer. Journal of industrial engineering research in production systems, 4(8), 195-211. (In Persian).
Jafari, M. A., Cheng, Y., Theofanis, S., Boile, M., & Maher, A. (2005). A dynamic berth allocation planning model. In International Workshop on Harbour, Maritime and Multimodal Logistics Modeling and Simulation, HMS 2005, Held at the International Mediterranean Modeling Multiconference, I3M 2005.
Jajja, M. S. S. (2013). Retail shelf space allocation analysis using system dynamics approach. Journal of quality and technology management9, 99-129.‏
Jiang, H. (2013), A system dynamics model for manpower and technology implementation trade-off and cost estimation (Ph.D Thesis, University of Central Florida). Rtrieved from
Kim, S. W., & Choi, K. (2008). A dynamic resource allocation on service supply chain. In supply chain, theory and applications (pp. 351-386). DOI: 10.5772/5351
Lee, Z. W., Ford, D. N., & Joglekar, N. (2004, July). Effects of resource allocation policies on project durations. International conference of the system dynamics society (pp. 25-29).
MacKenzie, C. A., Baroud, H., & Barker, K. (2016). Static and dynamic resource allocation models for recovery of interdependent systems: application to the deepwater horizon oil spill. Annals of operations research236(1), 103-129.‏
Marandi, F., & Zgardi, S. H. (2017). Integration of production and distribution schedules in the supply chain of dairy products using the improved particle mass optimization algorithm, transportation engineering, Journal of transportation engineering, 8(3), 545-565. (In Persian).
Mortazavi, S., & Seif Barghy, M. (2018). Two-objective modeling of location-allocation problem in a green supply chain considering transportation system and CO2 emission. Journal of industrial management perspective8(1, Spring 2018), 163-185.‏ (In Persian).
Nasirzadeh, F., Khanzadi, M., & Rezaie, M., (2013), System Dynamics Approach for Quantitative Risk allocation, International journal of industrial engineering & production research, 24(3), 237-246. (In Persian).
Philippine Statistics Authority. (2015). Dairy industry analytical report. Retrived from
Repenning, N. P. (2000). A dynamic model of resource allocation in multi‐project research and development systems. System dynamics review: The journal of the system dynamics society16(3), 173-212.‏;2-E
Samie Mohammadi, M., & Yousefi Nejad Attari, M. (2017). Multi-layer modeling of supply chain for products with limited lifespan (case study: Olive Oil in ETKA’s stores). Journal of industrial management, 12(40), 29-48. (In Persian).
Sefeedpari, P., Rafiee, S., Sharifi, M., & Akram, A. (2018). Detecting the best optimal dairy cattle herd sizes based on energy consumption using fuzzy linear programming model. Iranian journal of biosystems engineering49(1), 149-159.‏ (In Persian).‏ DOI:  10.22059/IJBSE.2017.124419.664607
Soydan, A. I., & Oner, M. A. (2012), Timely resource allocation between R&D and marketing: a system dynamics view, International journal of innovation and technology management, 9(2), 1-38.
Sterman, J. D. (2000). Business dynamics: systems thinking and modeling for a complex world. McGraw-Hill.
Thakker, R., Sarkani, S., & Mazzuchi, T. (2012). A system dynamics approach to demand and allocation of wireless spectrum for mobile communication. Procedia computer science8, 118-123.‏
Vos, B., & Akkermans, H. (1996). Capturing the dynamics of facility allocation. International Journal of Operations & Production Management, 16 (11), 57–70.
Xie, H., & Rao, R. (2014). A system dynamics model for medical staff allocation in post-wenchuan earthquake relief. In 2014 IEEE workshop on advanced research and technology in industry applications (WARTIA), 307-311. IEEE.‏ DOI: 10.1109/WARTIA.2014.6976258