The Supply Chain Crisis

Introduction

🚚 You manage a global supply chain network. Six interconnected variables control your product flow: Supplier Diversity, Inventory Levels, Shipping Delays, Customer Demand, Production Capacity, and Raw Material Cost.

Set the Inventory Buffer Size and run a 20-week simulation. Keep your delivery rate above 70% through a mid-simulation disruption event.

🔁 Reinforcing Loop

The Bullwhip Effect

When delays increase, companies panic-order more. Overorders amplify demand signals upstream. Suppliers can't keep up, creating more delays. Small disruptions become massive cascades.

Delays ↑ → Inventory ↓ → Panic Orders ↑ → Delays ↑↑

🔄 Balancing Loop

Safety Stock Buffering

Inventory buffers absorb disruption shocks. When delays spike, safety stock fills the gap. Deliveries stay on time. Customer demand remains stable. The system self-corrects without panic.

Delays ↑ → Buffer Absorbs → Delivery → → Stability

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