A Dynamic Simulation Study to Assess the Impact of Collaboration on the Performance of a Supply Chain Subject to a Variety of Demand Environments

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The Journal of Management and Engineering Integration


It has been well established that collaboration among members of supply chain yields lower inventory levels and increased profits across the supply chain. This research attempts to define the demand environments under which collaboration would be particularly beneficial. In this regard, a System Dynamics Model of a three echelon automotive parts supply chain is constructed and its performance is analyzed under various demand scenarios. The results indicate that supply chains faced with variable demand environments that are predictable offer the best potential for positive outcomes from collaboration.