Logistics Process Improvement Using Simulation and Stochastic Multiple Criteria Decision Aiding

Abstract

The paper is concentrated on improvement of a delivery process of parts and components for a vehicle production company based on just-in-time system. The authors have proposed a four-stage solution procedure. In the first stage the logistics process has been analysed and modelled using EPC notation in ARIS Business Architect. The major activities in the process, cause and effect relationships, key resources (personal and technical) and their assignment to the activities have been identified. In the second stage, multicriteria mathematical model has been constructed to evaluate the process performance. In the third stage, the simulation model has been built with an application of simulation tool ARIS Business Simulator, and the computational experiments have been carried out. Next, in the fourth stage the set of variants representing changes in the current logistics process have been created, equivalent changes have been introduced to the simulation model and computational experiments have been carried out. Based on the nondeterministic simulation results, in the next stage the variants have been ranked with an application of stochastic decision aiding method – stochastic ELECTRE III. Finally, the compromise variant of the logistics process improvement has been recommended.