Using discrete-event simulation for evaluating non-linear supply chain phenomena

We present a simulation model constructed in collaboration with Intel Corporation to measure and gauge the interaction of non-linear supply chain phenomena (such as waste, uncertainty, congestion, bullwhip, and vulnerability). A representative model that mimics part of Intel´s supply chain from fabrication to delivery is modeled using discrete-event simulation in ARENA. A “phenomena evaluation” framework is proposed to link model inputs and supply chain phenomena in order to evaluate supply chain configurations. Using a sample supply chain decision (safety stock level determination) we follow the “phenomena evaluation” framework to illustrate a final recommendation. Results show that our supply chain phenomena evaluation approach helps better illustrate some trade-offs than an evaluation approach based only on the traditional metrics (cost, service, assets etc.).