The Simulation Model of Supply Chains on the Macroeconomic Level is the Tool to Control the Economic Development of the Region

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Abstract

The management of economic development of the region is associated with the search of conditions and ways to achieve sustainable macroeconomic controlled system. This problem cannot be solved by fragmental solutions based on the analysis of fluctuation trends in the indicators, properties, and case elements. It is necessary to apply methods that will allow to research and to bring in order any region as a complicated macroeconomic system with a lot of interrelated elements and systems. To solve this problem, we applied the simulation modeling method. The novelty of this study is that as an instrument of economic growth at the macro level we consider the supply chain in the context of the formation of an integrated system of supply chains and the balanced development that meets the interests of all participants, economic agents, and targets of socioeconomic development of the region (the achievement of social effect). Particular industry supply chains and levels of integration of supply chains systems have been identified to determine the cost-effectiveness at various levels, based on categories such as price, quality, time, commercialization, and innovation. The simulation method makes it possible to form a holistic view of the system of regional supply chains and to conduct a comprehensive analysis of the balance between performance and efficiency at each level of the supply chain system. An experimental method of management, modeling, and forecasting, allowing to see the problems with the system approach was used in the developed simulation model, implemented on the basis of AnyLogic software.

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Lychkina, N., Molodetskaya, E., & Morozova, Y. (2017). The Simulation Model of Supply Chains on the Macroeconomic Level is the Tool to Control the Economic Development of the Region. In Springer Proceedings in Business and Economics (pp. 357–362). Springer Science and Business Media B.V. https://doi.org/10.1007/978-3-319-56288-9_47

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