Simulation-Based Production Planning for an Electronic Manufacturing Service Provider using Collaborative Planning

The growing trend of specialization is significantly increasing the importance of Electronic Manufacturing Services (EMS) providers. Typically, EMS companies operate within global supply networks characterized by high complexity and dynamic interactions between multiple stakeholders. As a consequence, EMS providers frequently experience volatile and opaque procurement and production planning processes. This paper investigates the potential of collaborative planning between EMS providers and their customers to address these challenges. Using discrete-event simulation, we compare traditional isolated planning approaches with collaborative planning strategies. Based on empirical data from an EMS company, our findings highlight the benefits of collaborative planning, particularly in improving inventory management and service levels for EMS providers. We conclude by presenting recommendations for practical implementation of collaborative planning in the EMS industry.