Processing of the simulation output parameters

Since the results provided by the simulation refer to specific companies of the supply chain the changes iu inventory levels and related costs have to be extrapolated before determining the EVA effect. Thus, for each supply chain player, the decision to implement of any SCI for larger customer and supplier base can be considered individually. Although an extrapolation factor can be determined for each output parameter two extrapolation factors are introduced according to Eq. (6-13) - for the supply side and for the demand side - to communicate the basic principle. Furthermore each supply chain player utilizes own extrapolation factors. 

The 3x3 matrix Ef with elements where ,/ = 1,2,3, characterizes the procurement volume on the company s supply side. The columns refer to the three segments of raw material / /, R2 and R3. The rows relate to the supplier base The first row (w=l) indicates the purchased raw material from the supply chain player that the simulation refers to. The second row (w=2) denotes the suppliers to which the SCI shall be implemented. The third row ( =3) refers to all other suppliers. Hence, the matrix characterizes the company s supply side by allocating the procurement volume of raw material into nine specific product-supplier-segments. Matrix structures the demand side analogously. The calculation of the extrapolation factors for the three segments of raw material Rm is performed according to Eq. (6-14). It is feasible for each product type P7, P2 and P3 respectively. 

6 Determination of an SCFs effect on costs and capital commitment 

Coital charges (invested cq)ital x cost of capital) 

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