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Summary of the system dynamics model

The introduced simulation model stands in accordance to research question RQc. [Pg.108]

The model presented is very usefid for gaining insights into the relation between SCIs and their financial impact. On a strategic level it supports top management in decisionmaking on whether to implement an SCI or not. On an operational level it can be used to convince supply chain partners to participate in an SCI. In this context, the information provided by the tool gives information on how costs and benefits are allocated along a supply chain. As a side effect, it helps to optimize inventory policies from a value-based perspective. In order to reduce complexity, the basic parameters can be easily comprehended and even calculated manually. [Pg.109]

Managerial and scientific insights on the vaiue determ ination ofSCis [Pg.109]

While Chapter 4 introduces the conceptual framework including the extrapolation approach and Chapter 5 provides a determination for the revenue change, this chapter addresses the influence of SCIs on costs and capital commitment. However, due to the special focus and set-up the simulation narrows the entire field of application down to manufacturing companies. The simulation model is hardly applicable for service or trading companies. [Pg.109]


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