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A simulation-based method for the design of supply strategies to enter developing markets

: Schwede, C.; Song, Y.; Sieben, B.; Hellingrath, B.; Wagenitz, A.

Seventh International Workshop on Modelling and Applied Simulation, MAS 2008. Proceedings : September 17-19, 2008 Campora S. Giovanni (CS), Italy
Campora S. Giovanni, 2008
International Workshop on Modelling and Applied Simulation (MAS) <7, 2008, Campora San Giovanni>
Conference Paper
Fraunhofer IML ()
Supply chain design; discrete-event simulation; Global Sourcing; product life cycle

In this paper we provide a method to support decision makers selecting strategies for global supply chains during the life cycle of a product. As we focus on developing markets such as China or Latin America, we stick to supply strategies which we call "supply strategies to enter developing markets". The method we present is divided into two steps. Starting with a definition and classification of these strategies a typology based selection method is used, clustering the strategies with respect to their elemental properties. Thus having pre-selected the strategies, due to the dynamic behaviour we use discrete-event simulation to have a closer look on the remaining options. Following this procedure, we are even able to achieve a more detailed setting of parameters such as stocks, capacities or transport frequencies. Within this paper we will focus on the second step of the method.