Supply chain configuration process

Application of the proposed framework in the supply chain configuration process is described in the Chap. 5 which presents a supply chain configuration methodology, while practical implementations of the framework are discussed in Chaps. 7 and 10. 

Given that the supply chain configuration initiative has been initiated, the supply chain configuration process follows the methodology outlined below ... 

Simulation is perceived as an essential part of the supply chain configuration process. It complements findings made using mathematical programming and other modeling approaches. In view of the high costs associated with the implementation of configuration decisions, simulation provides the means for detailed evaluation of these decisions before their physical implementation. 

Different applications involved in the supply chain configuration process. 

Development of descriptive supply chain configuration process models (Sect. 5.5.3). 

Cohen and Roussel (2005) define strategic supply chain as a process to create a unique supply chain configuration that will drive the company s strategic objectives, and should consider five critical configuration components ... 

The decisions listed above do not provide an exhaustive list of all supply chain configuration decisions. That, especially, applies to policy decisions. Decisions relevant to a particular decision-making problem, and decision variables characterizing these decisimis, are defined during the supply chain configuration problemsolving process. 

Logical implementation. Business processes related to supply chain configuration and information systems support requirements are implemented. 

Each problem can be addressed from multiple perspectives or views, such as data, process, space, and time. The data perspective characterizes the information required to make and implement supply chain configuration decisions. It also describes the structure of the supply chain configuration problem. The process perspective describes supply chain processes in relation to supply chain configuration. The space perspective addresses issues of locating supply chain units and other physical aspects of supply chain configuration. The time perspective allows analyzing of dynamic properties of supply chain configuration. 

Conceptual and information models. These describe the supply chain configuration problem from a conceptual and information processing perspective. This category also includes IT-driven and business process reengineering models described in the literature. 

The purpose of this step is to formalize definition of the supply chain configuration problem and gathering of appropriate data. The main tasks are (1) definition of supply chain configuration goals, relevant concepts and processes (2) data structuring and (3) data gathering from heterogeneous data sources. 

In order to account for environmental factors, it is also important to consider a kind of capacity or resources used in supply chain processes. For instance, Chaabane et al. (2012) set capacity hmits for specific production technologies and the most appropriate production technology is used to minimize emissions associated with production as one of the supply chain configuration objectives. 

The last measure is particularly important in the case of reconflgurable supply chains because it also characterizes processes during transition from one supply chain configuration to another. 

The validation of simulation models is an important, although difficult, step of the simulation modeling process. In the case of supply chain configuration, it is complicated by lack of historical records and a long feedback loop between implementation and observation of results, which are often obscured by other supply chain management decisions. Law and Kelton (2014) list the following approaches to validation of simulation models ... 

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