Quantifying the relative improvements of redesign strategies in a P.C. supply chain

The paper outlines the development of simulation models that describe the dynamic implications of various supply chain redesign strategies adopted by a major European manufacturer of personal computers. The strategies adopted in the real world supply chain, and replicated in the simulation models, are the introduction of the just-in-time philosophy in manufacturing plants, the development of a global materials planning system that attains visibility of total supply chain stock, a strategic supplier sourcing policy and the by-passing of the distribution network so as to directly interface with the customer. Simulation results suggest that dynamic performance improvements (which have an impact on customer service level achievement, stock holding requirements and production on-costs) were achieved by each consecutive redesign strategy. The paper concludes that the simulations are useful in educating and informing supply chain designers in other supply chains of the relative dynamic benefits of different supply chain redesign strategies.