Hybrid Simulation–expertise approach to balancing cost and resilience in global herbal supplement supply chains

• Proposes a novel hybrid simulation-expertise framework for supply chain decision-making under uncertainty. • Develops a robust Monte Carlo model for global supplier allocation and cost optimization in the herbal supplement industry. • Reveals and quantifies the critical trade-off between cost efficiency and supply chain resilience. • Provides validated, actionable insights for managers through structured expert consensus. • Offers a generalizable methodological framework applicable beyond herbal supplements. To address gaps in supply chain management for herbal supplements, this study proposes a hybrid frameworkthat integrates Monte Carlo simulation for quantitative risk assessment and cost optimization withtheDelphi method for qualitative refinement. Using a hypothetical complementary and alternative medicine firm sourcing ginseng, the simulation (10,000 iterations) optimizesthe cost at USD 35,171.83 under 100% Chinese supplier allocation, with shortages at 14.1% of demand.Parameters are refined throughDelphi validation by 12 experts (85% consensus), emphasizing diversification and sustainability, leading to an integrated allocation (87.5% Chinese) at USD 36,734.12—a 4.5% premium for enhanced resilience (shortages reduced to 13.7%). Sensitivity analyses highlight trade-offs, such as 8.5% cost increases from reliability drops. This validated approach advances supply chain management theory, offers generalizable insights for mitigating uncertainty in a $45.65 billion market,and bridges quantitative efficiencies with real-world applicability.

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Publication Details

Journal
Sustainable Futures
Published
2026-03-23
DOI
https://doi.org/10.1016/j.sftr.2026.101803
Primary Topic
Simulation Techniques and Applications
Type
article
Field-Weighted Citation Impact
0.00
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article

Hybrid Simulation–expertise approach to balancing cost and resilience in global herbal supplement supply chains

Zhilei Mao, Zhimo Zhu, Yuping Zhang, Haixin Li
Sustainable Futures
Simulation Techniques and Applications
article

Hybrid Simulation–expertise approach to balancing cost and resilience in global herbal supplement supply chains

Zhilei Mao, Zhimo Zhu, Yuping Zhang, Haixin Li
article en

Abstract

• Proposes a novel hybrid simulation-expertise framework for supply chain decision-making under uncertainty. • Develops a robust Monte Carlo model for global supplier allocation and cost optimization in the herbal supplement industry. • Reveals and quantifies the critical trade-off between cost efficiency and supply chain resilience. • Provides validated, actionable insights for managers through structured expert consensus. • Offers a generalizable methodological framework applicable beyond herbal supplements. To address gaps in supply chain management for herbal supplements, this study proposes a hybrid frameworkthat integrates Monte Carlo simulation for quantitative risk assessment and cost optimization withtheDelphi method for qualitative refinement. Using a hypothetical complementary and alternative medicine firm sourcing ginseng, the simulation (10,000 iterations) optimizesthe cost at USD 35,171.83 under 100% Chinese supplier allocation, with shortages at 14.1% of demand.Parameters are refined throughDelphi validation by 12 experts (85% consensus), emphasizing diversification and sustainability, leading to an integrated allocation (87.5% Chinese) at USD 36,734.12—a 4.5% premium for enhanced resilience (shortages reduced to 13.7%). Sensitivity analyses highlight trade-offs, such as 8.5% cost increases from reliability drops. This validated approach advances supply chain management theory, offers generalizable insights for mitigating uncertainty in a $45.65 billion market,and bridges quantitative efficiencies with real-world applicability.

Sustainable FuturesVol. 11
Openalex Percentile: Top 14%
Simulation Techniques and Applications
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