| Article ID: | iaor20082093 |
| Country: | United Kingdom |
| Volume: | 43 |
| Issue: | 4 |
| Start Page Number: | 295 |
| End Page Number: | 320 |
| Publication Date: | Jul 2007 |
| Journal: | Transportation Research. Part E, Logistics and Transportation Review |
| Authors: | Wilson Martha C. |
| Keywords: | supply & supply chains, transportation: general, simulation: applications |
This paper investigates the effect of a transportation disruption on supply chain performance using system dynamics simulation, comparing a traditional supply chain and a vendor managed inventory system (VMI) when a transportation disruption occurs between 2 echelons in a 5-echelon supply chain. The greatest impact occurs when transportation is disrupted between the tier 1 supplier and warehouse. In the traditional structure the retailer, warehouse, and tier 1 supplier experience the greatest inventory fluctuations and the highest goods in transit to their facilities. These impacts are less severe for the VMI structure, although unfilled orders are approximately the same for each.