The value of lead time reduction and stabilization: A comparison between traditional and collaborative supply chains
Authored by Jose Costas, Borja Ponte, la Fuente David de, Raul Pino, Julio Puche
Date Published: 2018
DOI: 10.1016/j.tre.2018.01.014
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Abstract
This work quantifies the financial impact of the mean and the
variability of production and shipping lead times on multi-echelon
supply chains. We combine agent-based modelling and Taguchi methods,
through which we develop a framework for supporting entrepreneurial
investment decisions. A throughput-based analysis reveals that
decreasing mean lead times improves the internal operation of production
and distribution systems, while reducing lead time variability enhances
the satisfaction of consumers. In this regard, we contrast traditional
and collaborative supply chains. We find that the latter are not only
more profitable than the former, but also more robust to variations in
lead times.
Tags
Simulation
Management
Performance
Supply Chain Management
Agent-based modelling and simulation
Decision-Making
information
Impact
Lead time
Supply chain
collaboration
Taguchi design of experiments
Throughput accounting
Stochastic lead
Variance amplification
Inventory systems
Bullwhip