Determination of an SCIs effect on costs and capital commitment

In terms of structuring, the chapter provides first a short overview of relevant research (Chapter 6.1) after which the simulation model for the determination of the financial 

Wessely, Value Determination of Supply Chain Initiatives, DOI 10.1007/978-3-8349-6323-9 6, Gabler Verlag I Springer Fachmedien Wiesbaden GmbH 2011 

1 Relevant fundamentals of determining an SCl s effect on costs and capital commitment 

Even though conceptual frameworks of supply chain performance measurement help management in the decision-making in a supply chain context, there is no workable method available for a braod scope of application to forecast the effect of an SCI on the EVA. Existing applications of simulation merely address specific issues in the SCM context and are not suitable for different types of SCIs. At the same time, most qjproaches model two echelons of a supply chain and do not allow a transfer of the results along the supply chain. In summary, there is a lack of a quantification model for the value determination of SCIs that is applicable to a variety of SCIs whilst considering the specific structures of supply chains at the same time. The following chapter introduces a simulation model for the quantification of cost and capital commitment effects that is compatible to the conceptual framework of Chapter 4. 

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