Invariant conditions in value system simulation models

This paper presents a framework for the integration of supply chain (or logistics/distribution), value chain (or financial), and business process (or operational/manufacturing) simulation models, which should facilitate assessing the impact of supply chain and operational changes on an enterprise's financial performance. A Design Science approach is taken to demonstrate that the REA ontology, which provides a shared conceptual ground for these three model types, and its axioms, which describe invariant conditions for value systems, can help to build conceptually sound simulation models and identify the integration points between these models. It is further shown how these three types of simulation models can be integrated into one value system model for discrete event simulation, making use of the ExSpecT simulation tool. With this ontology-based framework, simulation model builders should be able to scope their models better and define integration points with other models, which is expected to promote the (re)use of simulation models for different purposes (e.g., simulating logistical, operational and financial performance).