A Model for Superior Supply Chain Efficiency and Effectiveness

Achieving higher, or superior, supply chain performance is becoming a perpetual quest for many firms. In supply chain literature the concept of performance trade-offs between cost-efficiency and service level, is prevalent. Yet, some questions remain regarding the magnitude of these trade-offs, to what extent these presumed trade-offs impact our supply chains, and, how should we address these performance dimensions when configuring the supply chain. This paper seeks answers to these questions through employing system dynamics approach for simulating three key scenarios; efficiency-driven, effectiveness-driven, and, mixed-strategy supply chains. The preliminary findings reveal the dynamics between the main supply chain performance indicators.