Development and Simulation of a Balanced Scorecard for Sustainable Supply Chain Management – A System Dynamics Approach

The objective of this article is to develop a Balanced Scorecard (BSC) for Sustainable Supply Chain Management (SSCM). The BSC provides a framework for simulation experiments which serve to evaluate benefits of sustainability investments for the partners within a recycling supply chain. A system dynamics approach was employed to perform the simulation experiments. First, the simulations help to identify the preconditions that must be met before environmental and social measures can lead to a long-term profit increase for all network partners. Second, they demonstrate how limitations of the traditional BSC can be overcome, especially regarding multi-causal relationships between key performance indicators. The model is based on the results of a literature review and information gathered in expert interviews. The limits of the analysis lie in the fact that the simulation experiments are partly based on hypothetical assumptions. However, where possible, the authors have drawn on expert knowledge and existing surveys

Selection of simulation tools for improving supply chain performance

Simulation is an effective method for improving supply chain performance. However, there is limited advice available to assist practitioners in selecting the most appropriate method for a given problem. Much of the advice that does exist relies on custom and practice rather than a rigorous conceptual or empirical analysis. An analysis of the different modelling techniques applied in the supply chain domain was conducted, and the three main approaches to simulation used were identified; these are System Dynamics (SD), Discrete Event Simulation (DES) and Agent Based Modelling (ABM). This research has examined these approaches in two stages. Firstly, a first principles analysis was carried out in order to challenge the received wisdom about their strengths and weaknesses and a series of propositions were developed from this initial analysis. The second stage was to use the case study approach to test these propositions and to provide further empirical evidence to support their comparison. The contributions of this research are both in terms of knowledge and practice. In terms of knowledge, this research is the first holistic cross paradigm comparison of the three main approaches in the supply chain domain. Case studies have involved building ‘back to back’ models of the same supply chain problem using SD and a discrete approach (either DES or ABM). This has led to contributions concerning the limitations of applying SD to operational problem types. SD has also been found to have risks when applied to strategic and policy problems. Discrete methods have been found to have potential for exploring strategic problem types. It has been found that discrete simulation methods can model material and information feedback successfully. Further insights have been gained into the relationship between modelling purpose and modelling approach. In terms of practice, the findings have been summarised in the form of a framework linking modelling purpose, problem characteristics and simulation approach

Integration of e-business strategy for multi-lifecycle production systems

Internet use has grown exponentially on the last few years becoming a global communication and business resource. Internet-based business, or e-Business will truly affect every sector of the economy in ways that today we can only imagine. The manufacturing sector will be at the forefront of this change. This doctoral dissertation provides a scientific framework and a set of novel decision support tools for evaluating, modeling, and optimizing the overall performance of e-Business integrated multi-lifecycle production systems. The characteristics of this framework include environmental lifecycle study, environmental performance metrics, hyper-network model of integrated e-supply chain networks, fuzzy multi-objective optimization method, discrete-event simulation approach, and scalable enterprise environmental management system design. The dissertation research reveals that integration of e-Business strategy into production systems can alter current industry practices along a pathway towards sustainability, enhancing resource productivity, improving cost efficiencies and reducing lifecycle environmental impacts. The following research challenges and scholarly accomplishments have been addressed in this dissertation: Identification and analysis of environmental impacts of e-Business. A pioneering environmental lifecycle study on the impact of e-Business is conducted, and fuzzy decision theory is further applied to evaluate e-Business scenarios in order to overcome data uncertainty and information gaps; Understanding, evaluation, and development of environmental performance metrics. Major environmental performance metrics are compared and evaluated. A universal target-based performance metric, developed jointly with a team of industry and university researchers, is evaluated, implemented, and utilized in the methodology framework; Generic framework of integrated e-supply chain network. The framework is based on the most recent research on large complex supply chain network model, but extended to integrate demanufacturers, recyclers, and resellers as supply chain partners. Moreover, The e-Business information network is modeled as a overlaid hypernetwork layer for the supply chain; Fuzzy multi-objective optimization theory and discrete-event simulation methods. The solution methods deal with overall system parameter trade-offs, partner selections, and sustainable decision-making; Architecture design for scalable enterprise environmental management system. This novel system is designed and deployed using knowledge-based ontology theory, and XML techniques within an agent-based structure. The implementation model and system prototype are also provided. The new methodology and framework have the potential of being widely used in system analysis, design and implementation of e-Business enabled engineering systems

Developing Supply Chain Agility for the High-Volume and High-Variety Industry

Supply chains are under pressure to meet performance expectations under conditions in which access to the global network of suppliers and customers is fluid. Most studies accept the importance of agility to enhance performance using flexibility as a key dimension. Moreover, based on literature and empirical implications, it is essentially noticeable that there is an agreement on the need for flexibility in manufacturing to address both internal changes at the manufacturing echelon (e.g., a variation of process times) and external uncertainties (e.g., availability of ingredients, delivery schedules).However, there is a lack of adoptable metrics of manufacturing flexibility that can be used to evaluate manufacturing flexibility’s impact to enhance TH and reduce cost, both at the manufacturing echelon and the supply chain as a system as well as its impact on other echelons. Therefore, focusing on manufacturing flexibility as a competitive strategy induces a driving force for the success of the performance of supply chains. The purpose of this research is to present an applicable methodology for the evaluation of flexibility in a supply chain called Flexible Discrete Supply Chain (FDSC). The FDSC structure consists of a supplier, manufacturer, distributor, and customer as its conceptual model. Two main performance indicators – TH and cost are used to study the FDSC performance. This study utilizes four dimensions: volume, delivery, mix, and innovation (VDMI) flexibility. Quality function deployment is used to translate the dimensions of flexibility to key metrics that can be controlled in a discrete-event simulation (DES) model. The DES model is used to generate data, and for configuring VDMI metrics. The data is used for further sensitivity analysis. The developed methodology is verified and validated using data from a real case study. It is applicable to all supply chains within the FDSC criteria. This study contributes to the body of knowledge of supply chain flexibility through technical, methodical, and managerial implications. It clearly illustrated scenarios and provided guidelines for operations managers, to test among VMDI flexibility to maximize TH constrained by cost. Key directions for future research are identified

SENS: Semantic Synthetic Benchmarking Model for Integrated Supply Chain Simulation and Analysis

Supply Chain (SC) modeling is essential to understand and influence SC behavior, especially for increasingly globalized and complex SCs. Existing models address various SC notions, e.g., processes, tiers and production, in an isolated manner limiting enriched analysis granted by integrated information systems. Moreover, the scarcity of real-world data prevents the benchmarking of the overall SC performance in different circumstances, especially wrt. resilience during disruption. We present SENS, an ontology-based Knowledge-Graph (KG) equipped with SPARQL implementations of KPIs to incorporate an end-to-end perspective of the SC including standardized SCOR processes and metrics. Further, we propose SENS-GEN, a highly configurable data generator that leverages SENS to create synthetic semantic SC data under multiple scenario configurations for comprehensive analysis and benchmarking applications. The evaluation shows that the significantly improved simulation and analysis capabilities, enabled by SENS, facilitate grasping, controlling and ultimately enhancing SC behavior and increasing resilience in disruptive scenarios

Aligning operational and corporate goals: a case study in cultivating a whole-of-business approach using a supply chain simulation game

This paper outlines the development and use of an interactive computer-based supply chain game to facilitate the alignment of disconnected operational and corporate goals. A multi-enterprise internal cattle supply chain was simulated targeting the operational property managers and the overall impacts of their decision making on corporate goals A three stage multidisciplinary approach was used. A case study based financial analysis was undertaken across the internal cattle supply chain, a participative action research component (developing the game to simulate the flow of product and associated decisions and financial transactions through the internal supply chain of the company for different operational scenarios using measurable and familiar operational and financial criteria as tracking tools), and a qualitative analysis of organisational learning through player debriefing following playing the game. Evaluation of the managers' learning around the need for a change in general practice to address goal incongruence was positive evidenced by changes in practice and the game regarded by the users as a useful form of organisational training. The game provided property managers with practical insights into the strategic implications of their enterprise level decisions on the internal supply chain and on overall corporate performance. The game is unique and is a tool that can be used to help address an endemic problem across multi-enterprise industries in the agrifood sector in Australia

Evolution of Supply Chain Collaboration: Implications for the Role of Knowledge

Increasingly, research across many disciplines has recognized the shortcomings of the traditional “integration prescription” for inter-organizational knowledge management. This research conducts several simulation experiments to study the effects of different rates of product change, different demand environments, and different economies of scale on the level of integration between firms at different levels in the supply chain. The underlying paradigm shifts from a static, steady state view to a dynamic, complex adaptive systems and knowledge-based view of supply chain networks. Several research propositions are presented that use the role of knowledge in the supply chain to provide predictive power for how supply chain collaborations or integration should evolve. Suggestions and implications are suggested for managerial and research purposes