A Simulation-Based Evaluation Approachfor Digitalization Scenarios in Smart SupplyChain Risk Management

Abstract

To increase the security of modern, volatile supply chains a proactive risk management based on real-time risk related information transparency is required.At this time, none or only limited empirical/objective information about digitalization benefits for supply chain risk management is available.A method is needed, which draws conclusion on the estimation of costs and benefits of digitalization initiatives.The paper presents a flexible simulationbased approach for evaluating digitalization scenarios prior to realization.The evaluation approach is integrated into a framework and its applicability will be shown in a case study of a German steel producer, evaluating digitalization effects on the Mean Lead time-at-risk.

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