Discrete-event simulation for evaluating virtual organizations

Outsourcing is a major driver in the growth of virtual organizations (VOs) in the manufacturing domain. These outsourcing networks can be classified as VOs as they are created from different organizational entities for a specific purpose and exist for a specified period of time. This paper proposes the use of discrete event simulation (DES) as a means of evaluating proposed VO configurations within the request for quotation (RFQ) process. The work presented is targeted at manufacturing-based VOs that are created to carry out specific manufacturing tasks as outlined in an RFQ, rather than more general project-based VOs that are formed to carry out work within a less defined structure. Data from an existing virtual breeding environment, obtained during field research into outsourcing networks, are used to illustrate the use of DES to support VO creation. As DES requires a high level of skill to use, the design of an easy-to-use web-based application with an embedded simulation engine is described.