System dynamics simulation

System dynamics simulation

1. Sales Plan

   • + Customer service level = + sales volume
   • Less inventory
   • WACC % decreases

2. Software

   • Excel
     • Inputs
     • Results
   • Powersim
     • Simulation

3. Functions

   • Customers
   • Sales
   • Factories
   • Distribution
   • Transportation
   • Inventory planning
   • Suppliers
   • Supply Chain structure

4. Input Parameters

   • Statistical
     • Pareto
     • Expected payment periods
     • WACC %
   • Simulation
     • Demand planning reliability
       • SKU level

5. Results

   • Output table
   • Graphs
     • Economic Value Added vs. Demand planning reliability
     • EVA improvement in relation to the base scenario
     • EVA tree

6. Objective

   • Simulate the consequences of different scenarios in structure of supply chain.