Increasing the equity of a flower supply chain by improving order management and supplier selection

Abstract

This work focuses on helping the decision-making process of a microenterprise, the central organisation of a flower-exporting supply chain, to satisfy the objective of increasing its equity value by 300 %, and that of the whole supply chain at the same time. A systems dynamics-based simulation model is developed to evaluate the order management process in the supply chain under study, its financial evaluation and a supplier selection module from the central firm. The objective is to increase the equity value of the central firm and the supply chain under study. The main contribution of this work is to model and simulate a real world supply chain for decision-making. Hence, this paper can be used by other supply chains as a reference for modelling and simulating themselves in order to improve their performance.