A model measurement system for collaborative supply chain partners

The purpose of this paper is to understand business performance in the context of an electronic component company. This paper developed a system dynamics model that describes supply chain process structure and examines scenarios, as well. Thus, this study adopted the signal-to-noise (SN) ratio defined by the Taguchi method to evaluate the robustness of a specific supply chain behavior. Resulting in poor inventory cost performance with uncertainty demand, this paper shows how the factor delivery time and lead time of an order can improve performance. Finally, this paper serves as a guideline for decisions that require different inventory strategies.

► This study simulates two-echelon supply chain system. ► It proposes the scenario-based dynamic simulations and Taguchi method to observe a connector product. ► Resulting in poor inventory cost performance with uncertainty demand. ► Finally, this paper shows how the factor delivery time and lead time of an order can improve performance.