We build a hybrid discrete-continuous simulation model of the manufacturing enterprise system. This model consists of an overall system dynamics model of the manufacturing enterprise and connected to it are a number of discrete event simulations for selected operational and tactical functions. System dynamics modeling best fits the macroscopic nature of activities at the higher management levels while the discrete models best fit the microscopic nature of the operational and tactical levels. An advanced mechanism based on information theory is used for the integration of the different simulation modeling modalities. In addition, the impact of the decisions at the factory level in scheduling are analyzed at the management level. The different models of control are discussed.
INTRODUCTIONThe advances in information and computing technologies in addition to the unprecedented levels of competition and fast pace of changes in the business environment have created a more flattened enterprise system and changed the way enterprises should be managed. This is creating challenges to using simulation tools. The presence of manufacturing and nonmanufacturing functions in the manufacturing enterprise, the different types of behavior in the system, differences between management levels in the scope of planning, frequency of decision making, and levels of details they deal with, indicate that a single simulation approach cannot offer all that is needed in a simulation of such a complex system. The traditional use of discrete event simulation (DES) to simulate the manufacturing systems has narrowed the scope to detailed statistical analyses at the operational levels of the system. At that level, the main concerns have been the flow of materials and the levels of inventories and work in process, and the performance at the individual level of resources, units of products or processes (Smith 2003; Lee et al. The need to simulate the whole system (aggregate and detailed management level functions) has challenged DES, which was inadequate to approximate the continuous behavior in the system generally and particularly at the aggregate levels, or communicate appropriately the financial computations to higher management (Lee et al. 2002;Johnson and Eberlein 2002;Barton, Love, and Taylor 2001). DES works effectively with problems of narrow scopes, but LW LV ³« incompatible with a globDO SRLQW RI YLHZ´ /LQ HW al. 1998). And it does not address the stability of the system (Rabelo et al. 2005) that should be consi-3350 978-1-4244-9865-9/10/$26.00 ©2010 IEEE