Modeling and Simulating Disruptions and other Crisis Events in Virtual Enterprise Networks

Simulation is not only a powerful decision-making aid for supply chain managers but also a powerful research tool for theory building and testing. In addition to incorporating stochastic situations, simulation also enhances decision making by offering the flexibility to understand system behavior when cost parameters and policies are changed in a timely, cost-effective, and non-disruptive manner. The purpose of this chapter is to illustrate an approach toward modeling disruptions, risks and other crisis events in virtual enterprise networks. It provides several illustrations from published literature, presents a framework for managers and researchers to better apply and gain from the strength of simulation modeling, identifies several common pitfalls to avoid during the process, and compiles extensive references for readers who want to further their knowledge in this specific area.