Module-based modeling of production-distribution systems considering shipment consolidation

ABSTRACT

A module-based modeling method was developed to analyze the production-distribution systems by using a discrete event simulation with ARENA. Excel VBA was also adopted to automatically generate the simulation programs. Using the proposed method, one can quickly create a multistage, multi-item supply chain system such as serials, convergent, divergent or general networks, for analyzing the performance of a supply chain. Both inventory control and shipment consolidation policy were considered in this study. A number of outputs can be used as a performance measure in the decision making; for example, transportation costs, inventory level and costs, and the fill rate. An actual application model was generated using the proposed method. The result shows that the module-based method is a powerful tool for modeling the supply chain systems.

REFERENCES

• 1: Beamon, B. M., and V. C. P. Chen. 2001. Performance analysis of conjoined supply chains. International journal of production research 39 (14): 3195--3218.
• 2: Forrester, J. W. 1961. Industrial dynamics. 1st ed. Cambridge, Massachusetts: The M. I. T Press.
• 3: Higginson, J. K. and J. H. Bookbinder. 1994. Policy recommendations for a shipment consolidation program. Journal of Business Logistics 15: 87--112.
• 4: Sanjay Jain , Russell W. Workman , Lisa M. Collins , Eric C. Ervin , Andrew P. Lathrop, Supply chain applications II: development of a high-level supply chain simulation model, Proceedings of the 33nd conference on Winter simulation, December 09-12, 2001, Arlington, Virginia
• 5: David Kelton , Randall P. Sadowski , David T. Sturrock, Simulation with Arena, McGraw-Hill, Inc., New York, NY, 2003
• 6: Kleijnen, J. P. C., and M. T. Smits. 2003. Performance metrics in supply chain management. Journal of the Operational Research Society 54: 507--514.
• 7: Averill M. Law , W. David Kelton, Simulation Modeling and Analysis, McGraw-Hill Higher Education, 1997
• 8: Kanna Miwa , Soemon Takakuwa, Flexible module-based modeling and analysis for large-scale transportation-inventory systems, Proceedings of the 37th conference on Winter simulation, December 04-07, 2005, Orlando, Florida
• 9: Musalem, E. P., R. Dekker. 2005. Controlling inventories in a supply chain: a case study, International Journal of Production Economics 93--94: 179--188
• 10: Junichi Nomura , Soemon Takakuwa, Module-based modeling of flow-type multistage manufacturing systems adopting dual-card Kanban system, Proceedings of the 36th conference on Winter simulation, December 05-08, 2004, Washington, D.C.
• 11: Daniel Schunk , Beth Plott, Using simulation to analyze supply chains, Proceedings of the 32nd conference on Winter simulation, December 10-13, 2000, Orlando, Florida
• 12: Silver, E. A., D. F. Pyke, and R. Peterson. 1998. Inventory management and production planning and scheduling. 3rd ed. New York: John Wiley & Sons. Inc.
• 13: Smits, S. R., and A. G. Kok. 2002. Approximations for the waiting time in (s, nQ)-inventory models for different types of consolidation policies. In Quantitative Approaches to Distribution Logistics and Supply Chain Management, ed. A. Klose, M. G. Speanza, L. N. Van Wassenhove, 395--417. Berlin Heidelberg: Springer-Verlag.
• 14: Soemon Takakuwa, A practical module-based simulation model for transportation-inventory systems, Proceedings of the 30th conference on Winter simulation, p.1239-1246, December 13-16, 1998, Washington, D.C., United States
• 15: Soemon Takakuwa , Tsukasa Fujii, A practical module-based simulation model for transshipment-inventory systems, Proceedings of the 31st conference on Winter simulation: Simulation---a bridge to the future, p.1324-1332, December 05-08, 1999, Phoenix, Arizona, United States [doi>10.1145/324898.325091]
• 16: Van der Vorst, J. G. A. J., A. J. M. Beulens, and P. Van Beek. 2000. Modelling and simulating multi-echelon food systems. European Journal of Operational Research 122: 354--366.