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Aiming at the situation that many factors are involved in most simulation experiments, such as supply chain system or other computer simulation experiment, sequential bifurcation (SB) is widely used due to its high efficiency in screening. However, SB usually ignores the factors which are significant to dispersion effects. According to the theory of quality design used in products or supply chain, dispersion effects play an equally important part as location effects, and hence a new sequential bifurcation method considering both location effects and dispersion effects is proposed to screen the significant factors out and classify them simultaneously. Firstly, the significant factors are classified as adjusted factors, important factors and robust factors, according to their significance to the location effects and dispersion effects. Secondly, combined sequential probability ratio test (SPRT) to control the two types of error during the screening procedure, the significant factors are screened out and classified into three types. Finally, the efficiency and robustness of the proposed method which considers location effects and dispersion effects simultaneously is verified through a simulation model. [ABSTRACT FROM AUTHOR]