Comparison of the Robustness Between Domestic and Global Supply Chains

Abstract: Supply chain management is an important aspect of economics and logistics for companies and governments alike. As supply chains are required to enable profits and be efficient, while still being able to withstand disruptions, they are a matter of optimization and consideration toachieve a desirable performance. Using a Python-based model, a simulation has been performed on two serial supply chains. The chains represented a global and a domestic supply chain respectively, mainly differing in delivery time and their associated costs. Comparisons were made using four different test scenarios, where delivery times differed and the chains were analyzed in their ability to be both cost-efficient and maintain stable inventory levels.The simulations resulted in the domestic chain being better suited for cases when uncertainties were large and the global chain being more cost efficient when everything runs smoothly. Similar effects can be seen in reality.