Criticality of detailed modeling in semiconductor supply chain simulation

Abstract

Supply chain management offers a large potential for organizations to reduce costs and improve customer service performance. Simulation of supply chains can help in these objectives by evaluating the impact of alternative inventory control policies. Supply chain simulation involves the modeling of multiple factories across the chain and can get quite complex. Analysts typically carry out such simulation at a coarse level of detail to keep the complexity and computing resources manageable. However, modeling at coarse levels may reduce the accuracy of outputs and affect the quality of decisions. In this paper, we report on a study to compare the quality of results at different levels of detail in a semiconductor supply chain simulation.