Evaluating the performance of supply chain simulations with tradeoffs between multiple objectives

Simulation is well suited to the development and analysis of supply chain models, since the problems of interest tend to be complex and encompass uncertainty. However, there are typically multiple performance objectives that tend to conflict. A major problem in supply chain studies is that assumptions need to be made about the performance tradeoffs involved. Therefore, the conclusions may not be general. In this paper we develop an approach that allows both delivery performance and inventory levels to be considered over a range of tradeoffs. By developing tradeoff curves and analyzing the area under each we are able to reach conclusions that are more general and can be shown to be statistically valid.