Abstract
In this paper, a three-echelon supply chain model is analyzed to determine strategies to reduce the total supply chain system dynamics. Many researchers have attempted to improve the system performance by simulation of an abstract model representing the actual supply chain. Uniqueness of the research in this paper stems from the usage of multiple models with varying degrees of detail representing the same supply chain. The significance of a detailed supply chain model on the quality of experimental result obtained is made clear. Combinations of the factors employed to build an abstract to a detailed supply chain model include: (i) Transportation and production delay, (ii) Demand at the retailer, and (iii) Production and transportation capacity. It is shown that the system dynamics itself varies with increasing detail in the supply chain model. In addition, it is examined to see if a strategy found effective in improving the system dynamics with an abstract supply chain model is also effective with a detailed supply chain model. For this purpose, the following strategies are identified: Inventory level determination, Lead time reduction, Access to Point of Sale (PoS) data I, Access to PoS data II and Vendor Managed Inventory. It is established that the strategy found to be the most effective on an abstract model of the supply chain is not always the best strategy for the real supply chain.