Business Commons^™

Disruptions In Information Flow: A Revenue Costing Supply Chain Dilemma, Albert Munoz, Michael Clements

Albert Munoz

The integration of supply chains as a mechanism for value creation is largely dependent on continuous flowof real time accurate information from the customer back upstream to the manufacturer. This ideal is oftenunachievable when disruptions in the flow of information and materials are known to regularly occur in somemanufacturing supply chains. This paper focuses on quantifying the potential lost sales revenue attributed toinformation and material delays in a supply chain using discrete event simulation of the Beer Distribution Game.Results indicate a direct relationship between lost sales revenue and delay times. When exposed to severallevels of delay such disruptions will cause …