A hybrid simulation approach applied in sustainability performance assessment in make-to-order supply chains: The case of a commercial aircraft manufacturer

ABSTRACT

Make-to-order (MTO) supply chains (SC), common in aerospace industries, are very complex compared to mass production chains. Moreover, one of the significant long-term challenges is sustainability performance across its entire supply chain. However, this is not an easy task given the complexity involved, so decision support tools are fundamental instruments in understanding the entire supply chain from a sustainability performance perspective. Using simulation as a research method, this article proposes a hybrid and hierarchical performance assessment model, considering key sustainability indicators. The model is hybrid due to the use of different simulation methods– System Dynamics (SD), Discrete Event Simulation (DES), and Agent-based simulation (ABS). The model is applied to an aerospace manufacturer’s real case to assess the sustainability performance of alternative SC. Unlike existing contributions, this work addresses the make-to-order supply chain from a sustainability performance perspective and does not compromise the representation of the diverse manufacturing functions and resources.

KEYWORDS:

• Aerospace
• hybrid simulation
• make-to-order
• supply chain
• sustainability performance

Acronyms

ABS- Agent-based Simulation

AHP- Analytic hierarchy process

ANP- Analytical Network Process

DES- Discrete-event Simulation

DEVGD -Direct economic value generated and distributed at the manufacturer

DGHGE- Direct GHG emissions

DM- Decision-makers

ECOO - Energy consumption outside the organisation

ECWO - Energy consumption within the organisation

ETO- Engineering to order

GIS- Geographic Information System

GRI- Global Reporting Initiative

LCA- Life Cycle Assessment

LCI- Life-Cycle Inventory

LCIA- Life Cycle Inventory Analysis

MCDA – Multi-Criteria Decision Analysis

MOQ- Minimum Order Quantity

MTP- material transfer points

MTO - Make-to-Order

OEM- Original Equipment Manufacturers

OoA- out-of-autoclave

PSS- Product Service Systems

SC- Supply chain

SD- System Dynamics

SEW- Significant environmental impacts of transporting products and other goods and materials for the organisation’s operation

SSCM – Sustainable Supply Chain Management

TBL- triple bottom line

TDABC- time-driven activity-based costing

UML- Unified Modelling Language

VARI- resin injection

VBO- vacuum-bag-only

WH- Working hours

Acknowledgments

The authors gratefully acknowledge the financial support provided by Fundação para Ciência e Tecnologia through the project reference MITP-TB/PFM/0005/2013. The first author also acknowledges the financial support of Fundação para a Ciência e Tecnologia (FCT), under the grant PD/BD/105988/2014.

Conflicts of interest

No potential conflict of interest was reported by the author(s).