Dastyar, H; Pannek, J.:
Simulation-Based Sensitivity Analysis of Dynamic Contract Extension Elements in Supplier Development.
Proceedings of the 7th International Conference LDIC 2020, S. 341-350, 2020.


Today’s companies consider supplier performance as an essential factor to their competitive advantage specifically in dynamic marketplace. Therefore, supplier development experiences notable attention in variant industries. In this study, we aim to analysis the effects of an efficient supplier development program on the overall supply chain profit. We conduct a sensitivity analysis concerning supplier development cost parameters. To this end, we apply a model predictive control scheme in order to optimize a supplier development program in a monopolistic setting, consisting of one manufacturer and one supplier. Therefore, we conduct a full factorial simulation experiment varying all relevant parameters. The result shows that implementing supplier development provides significantly higher profits for the supply chain. Additionally, the study shows that, a high learning rate leads to the highest profit increase. Hence, manufacturer can invest on enhancing supplier’s learning rate to gain higher profit of supply chain.