Simulation-based analysis of a supplier-manufacturer relationship in lean supply chains

Purpose This paper aims to analyze a conceptual framework of supplier-manufacturer relationship in a lean supply chain environment, which considers two different configurations for the integration of information and material flows, aiming to better understand the applicability of such kind of approach to realistic cases. Design/methodology/approach Two different configurations for the integration of transport and material flows will be comparatively simulated and tested, aiming to better understand scientific implications and the applicability of such kind of approach to realistic cases in terms of performance of delivery service level and lead time. Findings The findings indicate that the conceptual model provides a framework to define threshold values of production variability to support the decision-making process regarding finished goods lean strategy. Furthermore, as the conceptual model considers as inputs the process variability of both supplier and customer’s production rates, it allows for the verification of the influence of supplier’s efficiency in the inventory sizing adopted in each case. Originality/value This study contributes to the body of literature on lean supply chain by proposing a simulation-based model that analyzes two different theoretical scenarios enabling the assessment of trade-offs among delivery service level, inventory strategy and production stability. This analysis provides theoretical arguments that may be extrapolated to real case situations, and considered other sources of instability that can impact the performance.