Methodological approach to study the dynamics of production networks: discrete‐event simulation modelling

This paper shows how discrete‐event simulation represents an appropriate tool for approaching the dynamics of production networks. Three important factors influencing production network dynamics, specifically finite production capacity, manufacturing lead time, and its variability are discussed and a basic discrete‐event simulation model is presented. Such model, which in its basic form represents a simple retail/distribution two‐stage supply chain, is then extended in order to take into account those factors that can not be included in a classical control theoretical model.