Supply Chain Responsiveness and Efficiency

Supply Chain Responsiveness and Efficiency – Complementing or Contradicting Each Other?
Dennis Minnich1 Frank H. Maier2 International University in Germany Campus 1 76646 Bruchsal, Germany Phone [phone] Fax [phone] e-mail [e-mail]

Abstract Balancing responsiveness to market requirements with overall efficiency is an important issue in supply chain design and management. The objective of the system dynamics model introduced in this paper is to capture generic structures and the intrinsic dynamic behaviour modes of supply chains considering aspects of responsiveness and efficiency. The research strives for a better understanding of these aspects: what are the structural consequences of implementing strategies striving for efficiency or responsiveness in the real world, and how can they be represented in a System Dynamics model? Furthermore, simulations will be used to assess the dynamic consequences of these different strategic alternatives. Future research will then focus on identifying policies to balance responsiveness and efficiency in a specific industry and by that resolve the trade-off between the two.

Keywords:

Supply Chain Management, Supply Chain Responsiveness, Supply Chain Efficiency, System Dynamics

1. Introduction
The responsiveness of supply chains to changing market requirements and their overall efficiency are important issues in supply chain design and management and therefore currently receive wide attention in the scientific community as well as in practice. Responsiveness can be defined as the “ability to react purposefully and within an appropriate time-scale to customer demand or changes in the marketplace, to bring about or maintain competitive advantage” (Holweg, 2005, p. 605). In contrast, a supply chain would be considered efficient if the focus is on cost reduction and no resources are wasted on non-value added activities (Naylor, Naim and Berry, 1999, p. 108).
Dennis Minnich, MSc, is Research

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