A Simulation Based Approach to Investigate the Procurement Process and Its Effect on the Performance of Supply Chains

Abstract

Influenced by the high dynamic of the markets the optimization of supply chains gains more importance. However, analyzing different procurement strategies and the influence of various production parameters is difficult to achieve in industrial practice. Therefore, simulations of supply chains are used in order to improve the production process. The objective of this research is to evaluate different procurement strategies in a four-stage supply chain. Besides, this research aims to identify main influencing factors on the supply chain's performance. The performance of the supply chain is measured by means of back orders (backlog). A scenario analysis of different customer demands and a Design of Experiments analysis enhance the significance of the simulation results.

Analyzing the Impact of Different Order Policies on the Supply Chain Performance

“…This paper continues a previous research which focused on the simulation of s,q and s,S order policies. The previous paper was called "A simulation based approach to investigate the procurement process and its effect on the performance of supply chains" [9]. Combining the model components and results of both papers, further research will focus on analyzing and comparing all four order policies as a whole.…”

E-Procurement and Performance of Manufacturing Firms in Buenos Aires, Argentina

“…According to Lysons and Gillingham (2009), electronic procurement (EP) is the appropriation of Internet innovation in the buying procedure. E-procurement practices emerged out of the serious deficiencies in the manual tender framework, for example, delays in the conclusion of providers for merchandise and ventures for organizational activities that impacts performance proficiency and conveyance of administrations to the natives (Stich, Pause, Blum and Hinrichs, 2016). The e-Procurement process is basically intended to maintain a strategic distance from human interface particularly the provider and purchaser communication amid the pre-bidding stage (World Bank, 2015).…”