Abstract
Discrete-Event Simulation is used to analyse a supply network under varying input conditions. The network is a 3-tier supply chain, with an OEM operating in a direct-to-customer environment supplied by a local inventory hub which, in turn is supplied by a contract manufacturer employing a Vendor Managed Inventory (VMI) system. Varying inputs of demand, lead-time and timeliness of information sharing are investigated with inventory levels, and expedited order requirements as the performance metrics. Results point to the fact that in a Make-to-Order environment, decreasing the time between demand forecast sharing between an OEM and a Contract Manufacturer can reduce the number of expedited orders in the system.
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