Implementation of Distribution Model of an International Company with Use of Simulation Method

Abstract

Customers all over the world have great expectations in terms of the delivery and availability of supplied items. It is thought that the most important, both for suppliers and their customers, are short-term orders realisation and flexible services. Simulation methods can be a strongly support for an entrepreneur in decision making process connected to these expectations or short-period and long-period planning. Simulation methods ensure possibilities to test and analyse different kind of “what-if” scenarios of distribution systems such as: potential surplus of orders or other untypical things mostly describes as force majeure. The main aim of the paper is to consider simulation model of distribution system that occur in one international entrepreneur that operates in the area of Poland. The paper consists of literature review, a reference model of the original system with elementary formal notation included and a reference model implementation into simulation software (in form of simulation model), conclusions and potential directions on the model development. The model of the distribution system consists of vertices and edges. Chosen vertices are elementary form of logistics facilities such as warehouses and production facilities such as factories. Meanwhile, edges are real shaped routes between verticals, if they exist.