Discussion of the system dynamics model

The value generated by the SCI for both companies sums up to 513 000 CHF. Since the improvement of the forecast accxuacy has also impact on the up- and downstream echelons the calculated value is just an excerpt of the overall value. For the determination of the overall EVA along the supply chain the other echelons have to be considered as well. However, investment costs are not considered in the made calculations. 

The approach introduced in this chapter marks a measurement method for an SCFs value in advance. Although the approach is to distinguish from the predominant 

6 Determination of an SCFs effect on costs and capital commitment 

The simulation merely focuses on the material flow and the respective information flow. The financial flow is disregarded which limits the variety of SCIs that can be potentially analyzed by the approach. For example, initiatives accelerate payments between supply chain partners so that the cash-to-cash cycle time is reduced cannot be displayed by the presented approach. In terms of further research, the financial flow can be integrated within the simulation by linking shipments and payments with time. Another less complex option is the static design of the cash-to-cash cycle in the input interface of the simulation and integration in the extrapolation approach. However, in both possibilities the cash-to-cash cycle is the relevant point of contact (Hutchison et al, 2009 Randall Fanis II, 2009). 

The above mentioned limitations influence the applicability of the model introduced. Accordingly, the suitability of SCIs is restrained to activities addressing the material flow which implicates the applicability for manufacturing companies. The configuration of the model is hardly applicable for the simulation of trading or service companies. 

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