An IT-enabled supply chain model: a simulation study

During the last decades, supply chain collaboration practices and the underlying enabling technologies have evolved from the classical electronic data interchange (EDI) approach to a web-based and radio frequency identification (RFID)-enabled collaboration. In this field, most of the literature has focused on the study of optimal parameters for reducing the total cost of suppliers, by adopting operational research (OR) techniques. Herein we are interested in showing that the considered information technology (IT)-enabled structure is resilient, that is, it works well across a reasonably broad range of parameter settings. By adopting a methodological approach based on system dynamics, we study a multi-tier collaborative supply chain. Results show that the IT-enabled supply chain improves operational performance and customer service level. Nonetheless, benefits for geographically dispersed networks are of minor entity.