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

Research output: Chapter in Book/Report/Conference proceedingConference contribution

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 languageEnglish
Title of host publicationProceedings of the 2018 Winter Simulation Conference
Pages3108-3119
Number of pages12
ISBN (Electronic)9781538665725
DOIs
Publication statusPublished - 04 Feb 2019
Event2018 Winter Simulation Conference (WSC), Gothenburg, Sweden - Gothenburg, Sweden
Duration: 09 Dec 201812 Dec 2018
http://meetings2.informs.org/wordpress/wsc2018/

Publication series

NameWinter Simulation Conference (WSC): Proceedings
PublisherIEEE
ISSN (Electronic)1558-4305

Conference

Conference2018 Winter Simulation Conference (WSC), Gothenburg, Sweden
Abbreviated titleWSC
CountrySweden
CityGothenburg
Period09/12/201812/12/2018
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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