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Modeling a Complex Supply Chain

The screenshot below is from a simple supply chain model for the automobile industry. It represents two “links” in the chain: the OEM and a single tier 1 supplier (in this case, the supplier of powertrains).

Purpose

The objective of this simplified model was to demonstrate the impacts of several key information delays within the system, and determine whether implementing procedures to reduce these delays would significantly improve overall performance.

Approach

This particular model includes sub-models for demand forecasting, material management, production scheduling, manufacturing, and delivery management. The external driver to the system is the rate at which dealers order new vehicles. The model allows you to experiment with various dealer order scenarios (and allows you to represent the random variability in orders that is inherently present). The impacts of potential strikes at manufacturing plants can also be represented.

Automobile Industry Supply Chain Model

 

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