A simulation based approach for supply network control

Abstract

We focus on the problem of strategic network design in the context of multi-site enterprises. We develop a simulation model for various supply network designs evaluation. The suggested model is generic in the sense that only input data modifications are needed to adapt the model to a given supply network structure, while the model's procedural logic stays unchanged. The model reproduces the dynamics of the totality of the supply chain activities. It takes into account control policies related to the inventory management and to the scheduling of production activities. It also carries out local optimisations by dynamically allocating the customers' demands to the appropriate distribution site and the replenishment orders expressed by the distribution and production sites of the enterprise so as to minimise a global cost function. Simulation execution permits to compute various performance measures. These indicators inform the decision-maker about the profit of the enterprise and about its customer's service level. In this paper, we propose to detail the simulation model. Then, for a fictitious problem of supply network design based on two real life applications, we highlight the influence of the control policies on the performance of the studied enterprise.

Recent Advances of Intelligent Optimization Algorithm in Manufacturing

“…It is more used in the modeling of real-time process or product design and can be combined with intelligent optimization algorithms to construct an adaptive evolution and dynamic feedback to solve complex problems. For simulation-based method, refer to references [126][127][128][129][130][131][132].…”

A fractal perspective-based methodological framework for supply chain modelling and distributed simulation with multi-agent system

“…Umeda and Zhang (2006) propose a simulation model which realises centre-controlled (push) system, buffer-driven (pull) system and their hybrid combined system. Pirard, Iassinovski, and Riane (2011) develop a simulation model for various supply network designs evaluation, through simulation-based approach, their model reproduces the dynamics of the totality of the supply chain activities. Other related works, such as Chatfield, Harrison, and Hayya (2006) develop a simulator for integrated supply chain operations, Chan et al (2006) present a prototype of knowledge-based simulation platform to predict the performance of suppliers and evaluate risk.…”

Modelling and simulation considerations for an end-to-end supply chain system

“…Pundoor and Herrmann (2004) proposed a SC simulation model based on Discrete Event Simulation (DES) and SCOR model to study the dynamic nature of the SC incorporating multiple level elements that permit the addition of extra features. Dynamic behaviour of the SC system instigated by supply, demand or lead time uncertainties has similarly been modelled by Pirard et al (2011), where the work presented by the authors evaluates various SC design scenarios under different control policies that were applied to inventory management, scheduling and production activities. Within their study, the decision maker was involved in optimizing the selected elements (rules) in the model to improve the SC system performance.…”