Analysing inventory management performance by simulating Supply Chain Management strategies

SCM strategies like information sharing achieve improvements of the performance in supply chains;however, due to the usual unbalanced improvement allocation they are not implemented very often. In order to analyse the benefits of SCM strategies, simulation experiments were carried out. In particular a five-stage linear supply chain (four suppliers, one plant, one retailer) was modelled and evaluated concerning the effects of the company-crossing information sharing strategy (planning-relevant and company-internal transmission of information to other involved companies) in contrast to sequential information exchange (pure information exchange about respective orders). Depending on the demand volatility as well as on the utilisation situation of the companies, effects of the inventory, the degree of utilisation as well as the adherence to delivery dates was analysed. Experiments showed that suppliers can profit especially through inventory reduction; the plant mainly profits through a more homogenous production utilisation and a higher adherence to delivery dates.