Case Study on the Design of more Sustainable and Resilient Manufacturing Networks: A Simulation-Driven Approach

The design of manufacturing networks and the decision-making process toward an alternative solution is a complex task that involves the consideration of conflicting and unpredictable factors. Despite some exceptions, costs are the primary focus of decision-making processes in this context. The integration of sustainability and resilience factors is still a less explored area and represents a challenge in manufacturing management from both practical and scientific perspectives. To address this gap, a discrete event simulation of an intra-firm network was developed, incorporating factors for evaluating costs, ecological sustainability, and resilience. Following this, different design alternatives, including outsourcing and relocation strategies in the case of a disruption, were simulated and compared. The case study shows that a more centralized production strategy results in a reduction of costs (-36%), transport-related emissions (-52%), and delivery delays without yielding the highest cost savings overall. The results indicate that outsourcing could be a more cost-effective alternative, still allowing for increased sustainability and resilience. Therefore, a strategic balance between costs, sustainability, and resilience is essential when deciding on a network design.