Studying the operational efficiencies of a multi-product supply chain using excel spreadsheet model

This paper presents a simple Excel spreadsheets-based model with @Risk add-in software that incorporates the effects of variability in demand, forecast and lead time. The model replicates a four-stage supply chain with multiple-retailers, wholesalers, manufacturers, and suppliers to demonstrate how a multi-product supply chain will react to certain changes. The model was created so that it could be used in either a teaching setting or in industry for making supply chain design decisions. From the teaching aspect, students can look at a supply chain and see the effects of changes without having to experience it firsthand. Professionals in industry can modify the model to make it more like their own supply chain and see what the affects are when they want to make changes in one or more attributes. Other key characteristics of a supply chain such as, bullwhip effect, total supply chain cost analysis and information sharing can also be studied using this model.

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