Simulation in the Supply Chain Domain : evaluating modelling approaches

Abstract

Supply chains are often complex dynamic networks which involve the integration, coordination and synchronisation of activities between different business entities and the transmission of both material and information. Simulation is a powerful technique for analysing and improving supply chain management (SCM) since it is suited to the particular challenges presented.A set of supply chain problems ranging from strategic to operational are modelled ‘back-to-back’ using different modelling approaches and the models and modelling process compared. Case studies include: the modelling the decision making process for centralisation of procurement in a large construction organisation; the modelling of the ‘Bullwhip’ effect and the modelling and simulation of a global logistics chain. The case studies include the analysis of a number of key factors and how they might influence choice of approach including: the level of problem (strategic to operational); feedback representation; human decision making and model purpose. A number of interesting and surprising findings emerge concerning these approaches