Manufacturing supply chain applications 2: parameterization of fast and accurate simulations for complex supply networks

ABSTRACT

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 fine-tuning a few parameters to make it represent an entire factory, a warehouse or a transportation link.

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