Enterprise simulation: a hybrid system approach

Manufacturing enterprise decisions can be classified into four groups: business decisions, design decisions, engineering decisions, and production decisions. Numerous physical and software simulation techniques have been used to evaluate specific decisions by predicting their impact on either system performance or product performance. In this paper, we focus on the impact of production decisions, evaluated using discrete-event-simulation models, on enterprise-level performance measures. We argue that these discrete-event models alone are not enough to capture this impact. To address this problem, we propose integrating discrete-event simulation models with system dynamics models in a hybrid approach to the simulation of the entire enterprise system. This hybrid approach is conceptually consistent with current business trend toward integrated systems. We show the potentials for using this approach through an example of a semiconductor enterprise.