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

Abstract

Influenced by the high dynamic of the markets and the steadily increasing demand for short delivery times the importance of supply chain optimization is growing. In particular, the order process plays a central role in achieving short delivery times and constantly needs to evaluate the trade-off between high inventory and the risk of stock-outs. However, analyzing different order 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 processes in the whole value chain. The objective of this research is to evaluate two different order strategies (t,q, t,S) in a four-stage supply chain. In order to measure the performance of the supply chain the quantity of the backlog will be considered. A Design of Experiments approach is supposed to enhance the significance of the simulation results.