How to determine a supply chain initiative's value contribution? : A simulation-based approach

In order to optimize supply chain collaboration specific investments in technology, material, organization or personnel are to be made. Thus, a cost-benefit analysis gives indications of the economic feasibility of a supply chain initiative (SCI) in advance. From a supply chain perspective, that analysis has to consider the investments and financial changes in operating business of affected supply chain players. This paper introduces a simulation-based approach for the determination of an SCI's financial impact to support decision-making. It additionally contributes by embedding the simulation in an extrapolation approach making it possible to consider the specific integration of companies within individual networks of suppliers and customers.