Stress testing a supply chain using simulation

Simulation provides the capability to evaluate performance of a system operating under current or proposed configurations, policies and procedures. It is very applicable to evaluation of strategic and operational level plans for supply chains. It is especially useful for exploring the viability of a supply chain before beginning production. This paper describes the use of simulation for determining the readiness of a supply chain designed by a small company for providing sub-systems to a defense contractor. The supply chain had to be stress tested at surge and mobilization volume levels to meet the requirements. Simulation provided the ideal methodology to identify and demonstrate the behavior of the supply chain under stress and evaluate strategies to meet the defined volumes. It was used to prove the readiness of the supply chain reducing perceived risks in using the virtual operation.