Design of Cooperative Processes in a Customer-Supplier Relationship: An Approach Based on Simulation and Decision Theory

TL;DR

This paper presents a simulation and decision theory-based approach to designing cooperative processes in customer-supplier relationships, aiming to improve supply chain performance under demand uncertainty.

Contribution

It introduces a novel method combining simulation and decision theory for designing cooperative supply chain processes considering risk management.

Findings

Evaluation of cooperative processes using simulation shows risk differences.

The approach is demonstrated on an aeronautics supply chain example.

Decision support enhances supply chain adaptability.

Abstract

Performance improvement in supply chains, taking into account customer demand in the tactical planning process is essential. It is more and more difficult for the customers to ensure a certain level of demand over a medium term horizon as their own customers ask them for personalisation and fast adaptation. It is thus necessary to develop methods and decision support systems to reconcile the order and book processes. In this context, this paper intends firstly to relate decision under uncertainty and the industrial point of view based on the notion of risk management. This serves as a basis for the definition of an approach based on simulation and decision theory that is dedicated to the design of cooperative processes in a customer-supplier relationship. This approach includes the evaluation, in terms of risk, of different cooperative processes using a simulation-dedicated tool. The evaluation process is based on an exploitation of decision theory concepts and methods. The implementation of the approach is illustrated on an academic example typical of the aeronautics supply chain.