Simulation-based Single versus Dual Sourcing Analysis in the Supply Chain with Consideration of Capacity Disruptions, Big Data and Demand Patterns

Sourcing strategy analysis in the settings of supply chain flexibility in regard to single vs dual sourcing has been a well explored area over the last two decades. In recent years, single vs dual sourcing analy-sis has been increasingly introduced in supply chain disruption management. Since most of the deci-sion-support models for supply chain sourcing strategy adaptation in the case of disruptions presume real-time information and coordination, the issues of Big Data and business intelligence needs to be included into the consideration. A supply chain simulation model with consideration of capacity dis-ruption and Big Data along with experimental results are presented. Based on both literature analysis and modelling example, managerial insights are derived. A set of sensitivity experiments allows to illustrate the model’s behaviour. The analysis suggest recommendation on using single sourcing, ca-pacity flexibility, and dual sourcing for different combinations of demand and inventory patterns. The paper is concluded by summarizing the most important insights and outlining future research agenda.

Simulation model data structure