Supply Chain Simulation of Manufacturing Shirts Using System Dynamics for Sustainability

Abstract

In supply chain management (SCM), goods and services flow from the raw materials stage to the end user with complexities and uncertainty at each stage. Computer modeling and simulation is a particularly useful method to examine supply chain operational issues because it can solve operational complexities that are challenging and time consuming to analyze. Manufacturing companies fear losing valuable time and assets during the manufacturing process; the inaccurate estimation of raw materials, human capital, or physical infrastructure not only leads to monetary loss for the manufacturing unit, but also has a detrimental effect on the environment. The purpose of this paper is to demonstrate that system dynamics modeling (SDM) in sustainable supply chain management (SSCM) can be applied to apparel manufacturing to optimize materials, labor, and equipment usage. Utilizing system dynamics (SD), the manufacturing unit can improve sustainability by reducing materials, labor, and equipment usage, which in turn reduces energy use. In our literature review, we did not identify any study addressing supply chain simulation of the manufacturing of shirts using SDM. We chose shirt manufacturing to demonstrate the model because of its relatively simple manufacturing process. In our study, we conclude that SDM simulation is an efficient way to optimize materials, labor, and equipment in apparel manufacturing. This leads to a more sustainable manufacturing process, as the model simulates different manufacturing supply chain scenarios in a risk-free environment, thereby minimizing waste and resources. Further, the outputs from the STELLA® model can be used as inputs into a subsequent life cycle assessment (LCA) model to determine the quantitative environmental impacts.