System dynamics modelling in supply chain management: research review
Proceedings of the 32nd conference on Winter simulation
A strategic supply chain simulation model
Proceedings of the 32nd conference on Winter simulation
Business Dynamics
Design specifications of a generic supply chain simulator
WSC '04 Proceedings of the 36th conference on Winter simulation
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The impact of the global economic crisis on the Mexican automotive suppliers and its effects on the labor capital are analyzed. Owing to the complexity of the subsystems involved in the automotive industry, a system dynamics approach was selected to develop the simulation model based on a case study. Nevertheless, because of the standard structure of the proposed model, it can be generalized to other automotive companies. The model provides a detailed causal analysis of how supply networks and local conditions interact. The results show the strong relationship existing between the local suppliers and the OEM at the core of the cluster, which can generate competitive advantages in the region. However, it can also create a gap in the local supply chains and in the labor capital when the demand of the OEM decreases due to factors such as the global economic crisis. The results reveal how clusters with a strong centralized structure in one industry make them highly specialized. However, the lack of effective public support policies makes them weaker in front of the variability imposed by globalization.