Understanding the Ripple Effect Through Spreadsheet Simulation

The ripple effect —i.e., the propagation of disruptions in supply chains— has become a crucial component of supply chain management courses, given its current importance in the industrial sphere. Understanding this dynamic phenomenon is essential to build resilient supply chains that are able to effectively accommodate disruptive events. This paper shows how, despite its complexity, this effect can be fruitfully explored through relatively simple simulation approaches, such as spreadsheets. We explain how to develop a multi-tab spreadsheet to study this effect. We also discuss how students and practitioners can use it to gain insight into the way several parameters and responses impact the magnitude of this phenomenon.