Quantifying the Benefits of Digital Supply Chain Twins—A Simulation Study in Organic Food Supply Chains
<i>Background</i>: Digital supply chain twins (DSCT) are gaining increased attention in academia and practice and their positive impact on logistics and supply chain management (LSCM) performance is often highlighted. Still, LSCM executives are hesitant regarding DSCT implementation. One...
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MDPI AG
2022-07-01
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| Series: | Logistics |
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| Online Access: | https://www.mdpi.com/2305-6290/6/3/46 |
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| author | Tom Binsfeld Benno Gerlach |
| author_facet | Tom Binsfeld Benno Gerlach |
| author_sort | Tom Binsfeld |
| collection | DOAJ |
| description | <i>Background</i>: Digital supply chain twins (DSCT) are gaining increased attention in academia and practice and their positive impact on logistics and supply chain management (LSCM) performance is often highlighted. Still, LSCM executives are hesitant regarding DSCT implementation. One reason is the difficulty of making a reasonable cost–benefit comparison, because the benefits of using a DSCT are rarely quantified. Moreover, there seems to be no method of quantifying these benefits as of today. <i>Methods</i>: This article builds upon an extensive simulation study of a constructed organic food supply chain (FSC), containing as many as 40 simulation experiments. In this simulation study, three volatility scenarios in the FSC were simulated and their effects on LSCM performance were measured. Subsequently, dynamic simulation experiments were run to emulate DSCT use. The benefits of using a DSCT were then quantified using a newly developed approach. <i>Results</i>: A conclusive method for quantifying the benefits of using a DSCT is presented and validated. Moreover, the performance evaluation of using a DSCT for the multi-echelon inventory management of an organic FSC is given. <i>Conclusions</i>: The study leads towards a method for quantifying the use of DSCTs that is of importance for research and practice alike. For managers, it additionally provides an exemplary application of said method in the context of organic FSCs. |
| format | Article |
| id | doaj-art-d8a76b35916f4ef0aefa8419c5e07860 |
| institution | DOAJ |
| issn | 2305-6290 |
| language | English |
| publishDate | 2022-07-01 |
| publisher | MDPI AG |
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| series | Logistics |
| spelling | doaj-art-d8a76b35916f4ef0aefa8419c5e078602025-08-20T03:18:11ZengMDPI AGLogistics2305-62902022-07-01634610.3390/logistics6030046Quantifying the Benefits of Digital Supply Chain Twins—A Simulation Study in Organic Food Supply ChainsTom Binsfeld0Benno Gerlach1Chair of Logistics, Berlin University of Technology, 10623 Berlin, GermanyChair of Logistics, Berlin University of Technology, 10623 Berlin, Germany<i>Background</i>: Digital supply chain twins (DSCT) are gaining increased attention in academia and practice and their positive impact on logistics and supply chain management (LSCM) performance is often highlighted. Still, LSCM executives are hesitant regarding DSCT implementation. One reason is the difficulty of making a reasonable cost–benefit comparison, because the benefits of using a DSCT are rarely quantified. Moreover, there seems to be no method of quantifying these benefits as of today. <i>Methods</i>: This article builds upon an extensive simulation study of a constructed organic food supply chain (FSC), containing as many as 40 simulation experiments. In this simulation study, three volatility scenarios in the FSC were simulated and their effects on LSCM performance were measured. Subsequently, dynamic simulation experiments were run to emulate DSCT use. The benefits of using a DSCT were then quantified using a newly developed approach. <i>Results</i>: A conclusive method for quantifying the benefits of using a DSCT is presented and validated. Moreover, the performance evaluation of using a DSCT for the multi-echelon inventory management of an organic FSC is given. <i>Conclusions</i>: The study leads towards a method for quantifying the use of DSCTs that is of importance for research and practice alike. For managers, it additionally provides an exemplary application of said method in the context of organic FSCs.https://www.mdpi.com/2305-6290/6/3/46digital supply chain twinslogistics and supply chain managementdigital twinlogisticssupply chain managementorganic food supply chains |
| spellingShingle | Tom Binsfeld Benno Gerlach Quantifying the Benefits of Digital Supply Chain Twins—A Simulation Study in Organic Food Supply Chains Logistics digital supply chain twins logistics and supply chain management digital twin logistics supply chain management organic food supply chains |
| title | Quantifying the Benefits of Digital Supply Chain Twins—A Simulation Study in Organic Food Supply Chains |
| title_full | Quantifying the Benefits of Digital Supply Chain Twins—A Simulation Study in Organic Food Supply Chains |
| title_fullStr | Quantifying the Benefits of Digital Supply Chain Twins—A Simulation Study in Organic Food Supply Chains |
| title_full_unstemmed | Quantifying the Benefits of Digital Supply Chain Twins—A Simulation Study in Organic Food Supply Chains |
| title_short | Quantifying the Benefits of Digital Supply Chain Twins—A Simulation Study in Organic Food Supply Chains |
| title_sort | quantifying the benefits of digital supply chain twins a simulation study in organic food supply chains |
| topic | digital supply chain twins logistics and supply chain management digital twin logistics supply chain management organic food supply chains |
| url | https://www.mdpi.com/2305-6290/6/3/46 |
| work_keys_str_mv | AT tombinsfeld quantifyingthebenefitsofdigitalsupplychaintwinsasimulationstudyinorganicfoodsupplychains AT bennogerlach quantifyingthebenefitsofdigitalsupplychaintwinsasimulationstudyinorganicfoodsupplychains |