Analyzing Competitive Strategies in Factoryless Manufacturing Using Agent-Based Simulation

Document Type : Research Paper

Authors

1 Prof., Department of Management and Information Technology, Faculty of Management, Islamic Azad University, South Tehran Branch, Tehran, Iran.

2 PhD Candidate in Industrial Management, Department of Management, Faculty of Management, Islamic Azad University, Science and Research University Branch, Tehran, Iran.

3 Assistant Prof., Department of Industrial Management, Islamic Azad University, South Tehran Branch, Tehran, Iran.

10.22059/imj.2025.395152.1008246

Abstract

Objective: This study addresses the fabless manufacturing business model's increasing relevance and complexity of decision-making. The primary aim is to develop and evaluate a simulation model for analyzing competitive strategies and optimizing managerial decisions in fabless supply chains. 
Methodology: An agent-based simulation approach was employed to model interactions between fabless companies and manufacturing factories. The decision-making process for manufacturing partners was based on three key criteria: quality, cost, and availability. The simulation was implemented using AnyLogic software and analyzed under competitive and non-competitive market scenarios. Validation was conducted using real-world data to ensure model accuracy and applicability.
Results: The study reveals that the weighting of criteria—quality, cost, and availability—significantly affects company performance in fabless manufacturing supply chains. Companies prioritizing quality tend to gain long-term advantages, while those focusing on cost may achieve short-term profits but struggle with sustainability. Competition complicates the balance of these criteria, leading to increased system-wide costs. These findings emphasize the need for nuanced strategies in dynamic markets.
Conclusion: The developed simulation model offers a robust quantitative framework for analyzing and optimizing decision-making in fabless manufacturing supply chains. It is a valuable decision-support tool for managers, enabling them to adopt optimal strategies that reduce costs, enhance product quality, and improve customer satisfaction in dynamic and competitive market conditions.

Keywords

References

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Industrial Management Journal
Volume 17, Issue 4
2025
Pages 140-159

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