Article ID: | iaor2007183 |
Country: | Netherlands |
Volume: | 169 |
Issue: | 3 |
Start Page Number: | 1064 |
End Page Number: | 1076 |
Publication Date: | Mar 2006 |
Journal: | European Journal of Operational Research |
Authors: | Shah Nilay, Samsatli Nouri J., Hung Wing Yan |
Keywords: | simulation: applications, scheduling |
In this paper we present a new modelling approach for realistic simulation of supply-chains. It is based on an object-oriented architecture, which enables flexible specification of the supply-chain configuration along with its operational decisions and policies. A model of a generic supply-chain node is developed to capture the features present in all supply-chain entities. The generic node models in detail activities such as inventory control, manufacturing processes and order handling. The supply-chain model is constructed by linking generic nodes and specifying the physical and business attributes of each supply-chain member. The generic-node model may also be linked to external software for greater accuracy, e.g., detailed production scheduling or optimisation. The model provides a fully dynamic simulation of the supply-chain and the effect of various uncertainties can be evaluated through Monte Carlo simulation and other, more efficient, sampling techniques (not described here). A case study is presented to illustrate the applicability of the model. The case study demonstrates how the effect of policy changes on the supply-chain performance under uncertainty can be evaluated before implementation.