Relations among supply chain design decisions and performance in push based contexts

This paper investigates the relations among supply chain design decisions (SCDD) and supply chain (SC) efficiency and effectiveness performance in a push based SC. SCDD are: the number of sources each node will buy from (multiple vs. single sourcing), the decision to install a certain level of production/inventory capacity at a certain node and to activate a certain number of nodes (splitting), the localization of the nodes (distance between nodes) and the number of levels of the SC. The SC performance analyzed are: average stock level of the SC and stock-outs at the retailer stage. A simulation model has been developed using ARENA software and results analyzed with statistical techniques (ANOVA). The relative magnitude of each SCDD has been figured out. These should be taken into account by SC managers when designing SCs in order to take proper action to reduce the negative effect.

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