Building Models of Global Supply Chains Basic Principles and Requirements

Abstract

In a market environment of increasing complexity, managing the entire supply chain becomes a critical factor for success in logistics. The requirements on simulation are as ambitious as wide-spread. Simulation models are implemented to evaluate concepts and system designs, analyse, modify and optimise existing systems and control material flows. This work covers two main topics. First, we analyse the properties of existing concepts for simulation models, so as to consolidate present knowledge on the modelling of a supply chain. Therefore, theoretical developments from the field of supply chain optimisation by simulation are revisited. Secondly, we describe and analyse the different key terms and concepts of discrete-event simulation. We characterise and distinguish the key terms for a supply chain simulation model, like objects, states, timeframes and flows and the specific requirements on different kinds of supply chains. Generally, the reasons for modelling a supply chain are quite divergent. Models are often case-based or focus on selected aspects or subsystems of a global network. Finally, we summarise potentials and shortcomings of supply chain simulation and delineate issues for further research