An Integrated Approach to Supply Chain Simulation

Author(s):  
Nenad Stefanovic ◽  
Bozidar Radenkovic

Simulation can be a valuable tool for supply chain analysis, planning, optimization, evaluation, and risk management. Computer simulation and simulation models can be used to model intricate supply chains close to real systems, execute those models, and observe system behavior. This chapter deals with supply chain modeling and simulation. It starts with a rationale for supply chain simulation, its advantages and benefits. The chapter gives a systematic background research and literature overview related to supply chain simulation with insights into the main simulation approaches and methods. Next, supply chain modeling and simulation methodology are described. It introduces a supply chain metamodel that enables modeling of both supply chain structure and dynamics. The main components like model database, process library, knowledge base, and execution engine are also described. The examples of various simulation scenarios are presented. Finally, the chapter gives the main future research directions and concludes with a brief discussion of supply chain simulation importance and applications.

Author(s):  
Nenad Stefanovic ◽  
Bozidar Radenkovic

Simulation can be a valuable tool for supply chain analysis, planning, optimization, evaluation, and risk management. Computer simulation and simulation models can be used to model intricate supply chains close to real systems, execute those models, and observe system behavior. This paper deals with supply chain modeling and simulation. It starts with rationale for supply chain simulation, its advantages and benefits. The paper gives a systematic background research and literature overview related to supply chain simulation with insights into the main simulation approaches and methods. Next, supply chain modeling and simulation methodology is described. It introduces supply chain Metamodel which enables modeling of both supply chain structure and dynamics. The main components like model database, process library, knowledge base, and execution engine are also described. The examples of various simulation scenarios are presented. Finally, the paper gives the main future research directions and concludes with a brief discussion of supply chain simulation importance and applications.


2011 ◽  
Vol 255-260 ◽  
pp. 2052-2056
Author(s):  
Zhuo Qun Li

Commonly, an upstream member in a supply chain provides productions or resources for many downstream members. When the sum of retailers order quantities is beyond suppliers' inventories, suppliers might apply order allocation mechanism to solve the difficulty. The allocation mechanism is not considered in most of previous studies on the bullwhip effect. This paper develops the supply chain simulation software based browser/server technology, which can build tree-shape supply chain structure considering allocation mechanism. Two experiments are designed and implemented in order to isolate the effect of different order allocation mechanisms on bullwhip effect. The studies show that BWV differs from allocation mechanisms. For three types of supply chain members, the change tendencies of BWV with two allocation mechanism are similar. The paper also demonstrates that distributors have effect more obviously on bullwhip effect than other two roles with different allocation mechanism.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mikihisa Nakano ◽  
Kazuki Matsuyama

Purpose The purpose of this paper is to discuss the roles of a supply chain management (SCM) department. To achieve that, this study empirically examines the relationship between internal supply chain structure and operational performance, using survey data collected from 108 Japanese manufacturers. Design/methodology/approach Based on a literature review of not only organizational theory but also other fields such as marketing, logistics management, operations management and SCM, this study focused on two structural properties, formalization and centralization and divided operational performance to firm-centric efficiency and customer-centric responsiveness. To examine the analytical model using these dimensions, this study conducted a structural equation modeling. Findings The correlation between centralization of operational tasks and centralization of strategic tasks, the impacts of centralization of both tasks on formalization and the effect of formalization on responsiveness performance were demonstrated. In addition, the reasons for formalization not positively influencing efficiency performance were explored through follow-up interviews. Practical implications Manufacturers need to formalize, as much as possible, a wide range of SCM tasks to realize operational excellence. To establish such formalized working methods, it is effective to centralize the authorities of both operational and strategic tasks in a particular department. In addition, inefficiency due to strict logistics service levels is a problem that all players involved in the supply chain of various industries should work together to solve. Originality/value The theoretical contribution of this study is that the authors established an empirical process that redefined the constructs of formalization and centralization, developed these measures and examined the impacts of these structural properties on operational performance.


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