Supply chain configurations: a model to evaluate performance in customised productions

Abstract

This paper describes an approach used to evaluate the performance of different supply chain configurations in customised contexts. Based on historical data collected from the supply chain of a shoe producer, different configurations are evaluated based on a discrete-event simulation by highlighting the performance of the supply chain (in terms of supply chain order lead-time and inventory volume) when the production switched from standard production (characterised by batches of large quantities of the same product) to customised production (characterised by a small of series batches with high product variability). The simulation approach relies on experimentation through executable configurations, which enables the creation of different scenarios, and is then applied to the case of an actual firm in the footwear industry. The managerial implications of these findings are discussed.

Keywords:

• supply chain management
• performance measures
• simulation
• customer preference
• customization