Hybrid Simulation–expertise approach to balancing cost and resilience in global herbal supplement supply chains
Year: 2026
Type: article
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.
Source: Sustainable Futures
Authors: Zhimo Zhu, Yuping Zhang, Haixin Li, Zhilei Mao
Institution: Nanjing Medical University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $2,340
OpenAlex ID: W7140085699