Efficiency and responsiveness of supply chains in the high-tech electronics industry : a system dynamics-based investigation

Abstract

Organizations can design planning systems for supply chain management in different ways in order to achieve the multiple objectives of supply chain management. In this book, a System Dynamics simulation model is used to assess the performance of planning approaches for supply chains in the high-tech electronics industry on the dimensions of responsiveness and efficiency. Supply chains in this industry are subject to a number of challenges that complicate the achievement of these two objectives, including short product life cycles and long component lead times. In recent years, companies experienced both decreasing delivery performance and increasing cost. The simulation results show that while the current planning approach in typical supply chains in this industry is not capable of supporting high responsiveness at the same time as high efficiency, it is possible to modify the planning system to achieve simultaneous improvements on both of these dimensions. Building on this simulation model, the book provides practical guidelines on how organizations can align the supply chain planning approach with different product characteristics and transform their supply chains into systems that are both responsive to customer demand and efficient