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Sensitivity analysis is an important part of the supply chain design discipline, allowing users to understand how robust a scenario is when variables such as transportation costs and customer demand change.
However, this important element of supply chain design was too often neglected, simply because of the processing-power limitations of desktop-based solutions. Building many scenario variations to test different changes was also cumbersome.
Begin by clicking the Sensitivity at Scale button in Cosmic Frog, then select the scenarios you want to run sensitivities on and click run.
Notice you also can see how many sensitivities Cosmic Frog will generate.
Cosmic Frog automatically generates sensitivity scenarios showing the impact on cost, service, and risk when transportation costs and demand quantities are adjusted by -15% -10% -5% +5% +10% +15%.
Forty-nine sensitivities are generated for each scenario and “hyper-scaled” all running in parallel on Optilogic’s cloud native platform.
Scenarios can be easily compared, evaluating their sensitivity to fluctuating transportation costs and customer demand.
Immediately we can see that near-shoring exclusively from EMEA may cost an additional £59M due to transportation cost and demand fluctuations, although the impact to supply chain risk is negligible.
You can choose to drill into specific sensitivities within each scenario.In this example we can see the supply chain cost increases to $288M when transportation costs increase to 15% and customer demand to 10% of the base scenario.
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