Simulating the impact of external demand and capacity constraints in aerospace supply chains

David J. G. Allen; Adrian Murphy; Joseph M. Butterfield; John S. Drummond; Stephen J. Robb; Peter L. Higgins; John P. Barden

doi:10.1109/WSC.2018.8632527

Simulating the impact of external demand and capacity constraints in aerospace supply chains

David J. G. Allen, Adrian Murphy, Joseph M. Butterfield, John S. Drummond, Stephen J. Robb, Peter L. Higgins, John P. Barden

School of Mechanical and Aerospace Engineering

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

3 Citations (Scopus)

Abstract

By outsourcing major aircraft systems to Tier 1 (T1) suppliers, original equipment manufacturers (OEMs) depend heavily on their supply chain (SC) to meet the growing demand for aircraft. However, capacity constraints upstream of the T1 suppliers increase the OEM’s risk of schedule disruption. Discrete event simulation (DES) is commonly applied to analyze capacity constraints in manufacturing systems while analytical models assess financial investment scenarios for capital equipment (CE). This paper demonstrates a combined DES and analytical modeling approach to simulate the operational and financial implications of capacity constraints in aerospace SCs. A three-tier SC scenario is modelled with the option of investing to remove a capacity constraint in the Tier 2 (T2) supplier. The results demonstrate how capacity investment decisions within individual SC members and the increasing demand for aircraft can affect T1 and sub-tier suppliers’ financial cash flows and delivery schedule adherence.

Original language	English
Title of host publication	Proceedings of the 2018 Winter Simulation Conference
Pages	3108-3119
Number of pages	12
ISBN (Electronic)	9781538665725
DOIs	https://doi.org/10.1109/WSC.2018.8632527
Publication status	Published - 04 Feb 2019
Event	2018 Winter Simulation Conference (WSC), Gothenburg, Sweden - Gothenburg, Sweden Duration: 09 Dec 2018 → 12 Dec 2018 http://meetings2.informs.org/wordpress/wsc2018/

Publication series

Name	Winter Simulation Conference (WSC): Proceedings
Publisher	IEEE
ISSN (Electronic)	1558-4305

Conference

Conference	2018 Winter Simulation Conference (WSC), Gothenburg, Sweden
Abbreviated title	WSC
Country/Territory	Sweden
City	Gothenburg
Period	09/12/2018 → 12/12/2018
Internet address	http://meetings2.informs.org/wordpress/wsc2018/

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10.1109/WSC.2018.8632527Licence: Unspecified

Cite this

Allen, D. J. G., Murphy, A., Butterfield, J. M., Drummond, J. S., Robb, S. J., Higgins, P. L., & Barden, J. P. (2019). Simulating the impact of external demand and capacity constraints in aerospace supply chains. In Proceedings of the 2018 Winter Simulation Conference (pp. 3108-3119). (Winter Simulation Conference (WSC): Proceedings). https://doi.org/10.1109/WSC.2018.8632527

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title = "Simulating the impact of external demand and capacity constraints in aerospace supply chains",

abstract = "By outsourcing major aircraft systems to Tier 1 (T1) suppliers, original equipment manufacturers (OEMs) depend heavily on their supply chain (SC) to meet the growing demand for aircraft. However, capacity constraints upstream of the T1 suppliers increase the OEM{\textquoteright}s risk of schedule disruption. Discrete event simulation (DES) is commonly applied to analyze capacity constraints in manufacturing systems while analytical models assess financial investment scenarios for capital equipment (CE). This paper demonstrates a combined DES and analytical modeling approach to simulate the operational and financial implications of capacity constraints in aerospace SCs. A three-tier SC scenario is modelled with the option of investing to remove a capacity constraint in the Tier 2 (T2) supplier. The results demonstrate how capacity investment decisions within individual SC members and the increasing demand for aircraft can affect T1 and sub-tier suppliers{\textquoteright} financial cash flows and delivery schedule adherence.",

author = "Allen, {David J. G.} and Adrian Murphy and Butterfield, {Joseph M.} and Drummond, {John S.} and Robb, {Stephen J.} and Higgins, {Peter L.} and Barden, {John P.}",

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doi = "10.1109/WSC.2018.8632527",

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series = "Winter Simulation Conference (WSC): Proceedings",

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Allen, DJG, Murphy, A , Butterfield, JM, Drummond, JS, Robb, SJ, Higgins, PL & Barden, JP 2019, Simulating the impact of external demand and capacity constraints in aerospace supply chains. in Proceedings of the 2018 Winter Simulation Conference. Winter Simulation Conference (WSC): Proceedings, pp. 3108-3119, 2018 Winter Simulation Conference (WSC), Gothenburg, Sweden, Gothenburg, Sweden, 09/12/2018. https://doi.org/10.1109/WSC.2018.8632527

Simulating the impact of external demand and capacity constraints in aerospace supply chains. / Allen, David J. G.; Murphy, Adrian ; Butterfield, Joseph M. et al.
Proceedings of the 2018 Winter Simulation Conference. 2019. p. 3108-3119 (Winter Simulation Conference (WSC): Proceedings).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

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AU - Allen, David J. G.

AU - Murphy, Adrian

AU - Butterfield, Joseph M.

AU - Drummond, John S.

AU - Robb, Stephen J.

AU - Higgins, Peter L.

AU - Barden, John P.

PY - 2019/2/4

Y1 - 2019/2/4

N2 - By outsourcing major aircraft systems to Tier 1 (T1) suppliers, original equipment manufacturers (OEMs) depend heavily on their supply chain (SC) to meet the growing demand for aircraft. However, capacity constraints upstream of the T1 suppliers increase the OEM’s risk of schedule disruption. Discrete event simulation (DES) is commonly applied to analyze capacity constraints in manufacturing systems while analytical models assess financial investment scenarios for capital equipment (CE). This paper demonstrates a combined DES and analytical modeling approach to simulate the operational and financial implications of capacity constraints in aerospace SCs. A three-tier SC scenario is modelled with the option of investing to remove a capacity constraint in the Tier 2 (T2) supplier. The results demonstrate how capacity investment decisions within individual SC members and the increasing demand for aircraft can affect T1 and sub-tier suppliers’ financial cash flows and delivery schedule adherence.

AB - By outsourcing major aircraft systems to Tier 1 (T1) suppliers, original equipment manufacturers (OEMs) depend heavily on their supply chain (SC) to meet the growing demand for aircraft. However, capacity constraints upstream of the T1 suppliers increase the OEM’s risk of schedule disruption. Discrete event simulation (DES) is commonly applied to analyze capacity constraints in manufacturing systems while analytical models assess financial investment scenarios for capital equipment (CE). This paper demonstrates a combined DES and analytical modeling approach to simulate the operational and financial implications of capacity constraints in aerospace SCs. A three-tier SC scenario is modelled with the option of investing to remove a capacity constraint in the Tier 2 (T2) supplier. The results demonstrate how capacity investment decisions within individual SC members and the increasing demand for aircraft can affect T1 and sub-tier suppliers’ financial cash flows and delivery schedule adherence.

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Simulating the impact of external demand and capacity constraints in aerospace supply chains

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Simulating the impact of external factors on aerospace supply chains

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Simulating the impact of external demand and capacity constraints in aerospace supply chains

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Simulating the impact of external factors on aerospace supply chains

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