Abstract: Time bottleneck identification is the principal procedure of time compression in supply chain.Based on the supply chain network model, and the thought of supply chain cooperation and integration without borders, this paper views the production process as a product logistic process among the links in supply chain.After analyzing this logistic process, a logistic process model is established.Then using the transfer probability of the product logistics moving among the links in supply chain, combined with the thought of the Value Engineering(VE), this paper presents an identification method of supply chain time bottleneck and the procedure of the time compression.At the end of this paper, a practical simulation is gmen.

Key words: supply chain, product logistic process model, Value Engineering(VE), time bottleneck, identification, compression