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

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    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
    Number of pages12
    ISBN (Electronic)9781538665725
    Publication statusPublished - 04 Feb 2019
    Event2018 Winter Simulation Conference (WSC), Gothenburg, Sweden - Gothenburg, Sweden
    Duration: 09 Dec 201812 Dec 2018

    Publication series

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


    Conference2018 Winter Simulation Conference (WSC), Gothenburg, Sweden
    Abbreviated titleWSC
    Internet address

    ID: 165313055