In today’s environment, Supply Chain Management (SCM) takes a key role in business strategy. A major challenge is achieving high customer service level under a reasonable operating expense and investment. The traditional approach to SCM, based on local optimisation, is a proven cause of meaningful inefficiencies – e.g. the Bullwhip Effect – that obstruct the throughput. The systemic (holistic) approach, based on global optimisation, has been shown to perform significantly better. Nevertheless, it is not widely expanded, since the implementation of an efficient solution requires a suitable scheme. Under these circumstances, this paper proposes an integrative framework for supply chain collaboration aimed at increasing its efficiency. This is based on the combined application of the Beer’s Viable System Model (VSM) and the Goldratt’s Theory of Constraints (TOC). VSM defines the systemic structure of the supply chain and orchestrates the collaboration, while TOC implements the systemic behaviour – i.e. integrate processes – and define performance measures. To support this proposal, we detail its application to the widely used Beer Game scenario. In addition, we discuss its implementation in real supply chains, highlighting the key points that must be considered.

Since supply chains are increasingly built on complex interdependences, concerns to adopt new managerial approaches based on collaboration have surged. Nonetheless, implementing an efficient collaborative solution is a wide process where several obstacles must be faced. This work explores the key role of experimentation as a model-driven decision support system for managers in the convoluted decision-making process required to evolve from a reductionist approach (where the overall strategy is the sum of individual strategies) to a holistic approach (where global optimization is sought through collaboration). We simulate a four-echelon supply chain within a large noise scenario, while a fractional factorial design of experiments (DoE) with eleven factors was used to explore cause-effect relationships. By providing evidence in a wide range of conditions of the superiority of the holistic approach, supply chain participants can be certain to move away from their natural reductionist behavior. Thereupon, practitioners focus on implementing the solution. The theory of constraints (TOC) defines an appropriate framework, where the Drum-Buffer-Rope (DBR) method integrates supply chain processes and synchronizes decisions. In addition, this work provides evidence of the need for aligning incentives in order to eliminate the risk to deviate. Modeling and simulation, especially agent-based techniques, allows practitioners to develop awareness of complex organizational problems. Hence, these prototypes can be interpreted as forceful laboratories for decision making and business transformation. We model an agent-based supply chain under a large noise scenario.A fractional factorial DoE with eleven factors has been used.Economic robustness of the TOC is shown compared to the classic OUT policy.The research brings evidence of the need for aligning incentives in the system.ABM prototypes are highlighted as powerful model-driven DSSs for supply chains.

Purpose: The purpose of this paper is to identify the principal success factors of a software project structured upon the basis of the viable system model (VSM).Design/methodology/approach: To do so, an exploratory empirical analysis is conducted of a set of software projects, in which the degree of compliance with the requirements set down by the VSM and the success rating of their development are identified.Findings: The results of the study indicate that the most influential factors in achieving global viability in a software project are the local environment, the organizational units and the intelligent system. Building on those factors, a mathematical prediction model is developed, reaching an accuracy of 63.16 percent in its predictions.Research limitations/implications: The authors wish to point out that due to the number of projects employed in the statistical analysis, the results have to be interpreted with caution and are of an exploratory nature.Practical implications: The authors seek to show that the VSM is an extremely useful tool for the management of software projects and, by extension, projects of a general nature. The authors therefore suggest that knowledge of VSM would be of incalculable value for managers wishing to manage projects successfully and to survive in such a complex and rapidly changing environment as the software project environment is. Its application allows us to diagnose and to detect the critical factors to achieve such success.Social implications: In addition, the research seeks to increase the universality of VSM, contributing to a better understanding of it and a better and greater formalization of it in favor of its acceptance and its practical use, seeking in this way to palliate some critical principals related to its abstraction and limited applicability and to increase its rigor and validity as an instrument for the diagnosis and the design of viable organizations.Originality/value: The novelty of this study is therefore principally found in the application of the VSM to the organizational structure of a software project in such a way that it allows us to detect key factors in its success. Besides, building on the validation of this proposal through the completion of a quantitative empirical analysis, this study also offers a prediction mathematical model that relates key factors with the success of the project.