Supply chain management is looking for adoption of solutions to achieve the goals defined for the chain. Therefore, integrated production and distribution processes, consisting of all the effective components throughout the chain, require a comprehensive, dynamic, and effective approach. Proper identification of the variables and factors in the chain not only can improve the chain’s strengths, but also enable us to identify the reasons for its failure by comparing it with other successful chains. And through reforming it, the performance of the given area can be developed and thereby, its success is guaranteed in entire chain. Accordingly, the research team of this study aims to identify the loops affecting the performance of the metal industries production chain and to identify the basic variables affecting the performance of the production chain by using the dynamic system approach. Shablon Tajhiz Company was selected as one of the most successful industrial companies in Kermanshah province. In the presented model, 12 causal loops were identified and examined.