Performance and sensitivity analysis of supply chain alternative configurations - A case study

This paper presents an approach to simulating alternative supply chain configurations and analysing their respective sensitivities to external factors. First of all, the approach used for modelling the supply chain environment, characterized by uncertain factors, is presented. The factors that influence supply chain performance include elements such as customer demand, currency exchange rate, transportation and location dependent learning curve, and so on. The simulation model helps measure global performance indicators such as production and transportation cost, delivery leadtime and CO2 emission rate. Alternative configurations are modelled and simulated in order to compare their respective performance and most influencing factors. The analysis result then might be useful for the purpose of optimizing a given supply chain configuration or finding an optimal configuration among different possible options.