Improving Supply Chain Activity using Simulation (original) (raw)
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Simulation software as a tool for supply chain analysis and improvement
Computer Science and Information Systems, 2016
Effective decision making in the automotive supply chain is complex, due to the increasing number of suppliers and customers who form part of it. For this reason, the use of tools that allow to improve the performance of the supply chain is necessary. Simulation Software is one of these tools. Therefore, in this paper a simulation model to improve the performance of an automotive supply chain is developed. Using sensitivity analysis, this study finds the values that allow the supply chain to improve its order fulfilment indicator. In the sensitivity analysis, the variables Cycle Time, Production Adjustment Time, Delivery Time, Raw Material Inventory, and Finished Good Inventory, were modified. The results show that: 1) in the base line scenario, only the 78.85% of the orders are fulfilled, and 2) to fulfil the 100% of the orders Cycle Time, Production Adjustment Time, and Delivery Time must be reduced to one week.
Supply Chain Management by Means of Simulation
Polibits, 2013
Several changes in the macro environment of the companies over the last two decades have meant that the competition is no longer constrained to the product itself, but the overall concept of supply chain. Under these circumstances, the supply chain management stands as a major concern for companies nowadays. One of the prime goals to be achieved is the reduction of the Bullwhip Effect, related to the amplification of the demand supported by the different levels, as they are further away from customer. It is a major cause of inefficiency in the supply chain. Thus, this paper presents the application of simulation techniques to the study of the Bullwhip Effect in comparison to modern alternatives such as the representation of the supply chain as a network of intelligent agents. We conclude that the supply chain simulation is a particularly interesting tool for performing sensitivity analyses in order to measure the impact of changes in a quantitative parameter on the generated Bullwhip Effect. By way of example, a sensitivity analysis for safety stock has been performed to assess the relationship between Bullwhip Effect and safety stock.
An Integrated Approach to Supply Chain Simulation
2018
Simulation can be a valuable tool for supply chain analysis, planning, optimization, evaluation, and risk management. Computer simulation and simulation models can be used to model intricate supply chains close to real systems, execute those models, and observe system behavior. The goal of simulation is to evaluate existing supply chain configurations, as well as to aid in design of the new supply chains. Supply chain simulation matters both supply chain design and supply chain control. In other words, it helps resolve different supply chain management (SCM) problems which can be grouped into the following categories:
The value of simulation in modeling supply chains
1998 Winter Simulation Conference. Proceedings (Cat. No.98CH36274)
In business today, re-engineering has taken a great deal of the cost out of internal corporate processes. Our factories and internal support organizations have become much more efficient, but there is still a great deal of unnecessary cost in the overall delivery system, or the supply chain. Although your corporation does not own all of the supply chain, the entire chain is responsible for product delivery and customer satisfaction. As one of several methodologies available for supply chain analysis, simulation has distinct advantages and disadvantages when compared to other analysis methodologies. This paper discusses the reasons why one would want to use simulation as the analysis methodology to evaluate supply chains, its advantages and disadvantages against other analysis methodologies such as optimization, and business scenarios where simulation can find cost reductions that other methodologies would miss.
Simulation Optimisation Methods in Supply Chain Applications: A Review
2010
T he competitiveness and dynamic nature of today's marketplace is due to rapid advances in information technology, short product life cycles and the continuing trend in global outsourcing. Managing the resulting supply chain networks effectively is challenged by high levels of uncertainty in supply and demand, confl ict objectives, vagueness of information, numerous decision variables and constraints. With such levels of complexity, supply chain optimisation has the potential to make a signifi cant contribution in resolving these challenges. In this paper, a literature review -based on more than 100 peer-reviewed articles -of state-of-the-art simulation-based optimisation techniques in the context of supply chain management is presented. A classifi cation of supply chain problems that apply simulation-optimisation techniques is proposed. The main criteria for selecting supply chain optimisers are also identifi ed, which are then used to develop a map of optimisation techniques. Such a map provides guidance for researchers and practitioners for a proper selection of optimisation techniques.
How can simulation help in supply chain development
1999
The objective of this paper is to explore how simulation can be applied to support the development of responsive supply chains. We propose a stepwise approach for the use of simulation to support in evaluating appropriate supply chain designs. The role of simulation in the development process is a tool for evaluating and fmding solutions when reconsidering the chain strategy. A basic materials manufacturer case is presented to give an application example. The use of simulation is also discussed from a knowledge management perspective. It is concluded that the integration of simulation models to existing ERP systems will help supply chain development especially for the responsive chains.
Supply Chain Simulation: Experimentation without Pain
2010
Bridging the gap between theory and practice has always been a key issue for students and graduates. The magnitude and scope of subject areas that students at third level institutions have to learn in theory means that visualising them without any practical experience can be very difficult. Understanding the complexity of supply chain networks and how to manage them create a considerable level of difficulty for students and professionals. Theories and applications included in supply chain management subjects are the key to empathise the real challenges. Nevertheless, teaching these theories needs substantial efforts and new innovative approaches to deliver the concepts and assure successful transfer of the learning outcomes.
Panel session: opportunities for simulation in supply chain management
Proceedings of the Winter Simulation Conference
It has become a matter of survival that many companies improve their supply chain efficiency. This presents an opportunity for simulation. However, there are many challenges that must be overcome for simulation to be a contributor to play an effective role. Four contributors discuss the opportunities that they see for simulation to play a meaningful role in the area of supply chain management.
Proceedings of the 34th …, 2002
More efficient and effective control of supply networks is conservatively worth billions of dollars to the world economy. Adopting an approach by which the basic disciplines of Industrial Engineering, Control Engineering, System Simulation and Business Re-Engineering are integrated into one comprehensive system has been known to produce impressive results. This paper discusses a modular approach to develop a discrete event simulation model that has the appropriate level of abstraction to capture the inherent complexities that exist in a supply chain and is yet simple, fast and produces results of high fidelity. It discusses a method to parameterize each module by finetuning a few parameters to make it represent an entire factory, a warehouse or a transportation link.