Simulation modeling for comparative evaluation of supply chain management strategies

Abstract

Supply chain management (SCM) has become one of the most important strategies for achieving competitive advantage in different industries in the last decade. Researchers have investigated various processes in the planning and development of supply chains. However, increasing attention has been placed on performance, design and analysis of supply chain models. A supply chain is a complex model that is very difficult to analyze, in particular, with respect to performance. Simulation is one of the effective tools to evaluate the control mechanism for a supply chain. In this paper, five common supply chain models have been built and tested with the aid of simulation. Various performance measures such as transportation cost, resources utilization, inventory level, and order cycle time will be calculated for comparative indications. The methodology that is presented in this paper can be extended to any real life applications in SCM. © Springer-Verlag London Limited 2004.