Order release mechanisms in supply chain management: a simulation approach

Abstract

A simulation approach to measuring supply chain performance is evaluated which incorporates order release theory. Within manufacturing a number of order release mechanisms have been developed. The importance of order release is first examined and its applicability to monitoring the performance of the supply chain is proposed. A simulation model of a typical, single channel logistics network was developed. Using the simulation model, each of the order release mechanisms was assessed and close agreement was obtained with the work of previous researchers. A new order release approach is proposed which is found to be superior to those analysed previously and should lead to improved supply chain performance.