Simulation model of multi-compartment distribution in the catering supply chain

Abstract

An efficient distribution system of high performance is needed to anticipate market developments in the catering supply chain (CSC) in the Netherlands. A simulation model was developed to analyse a multi-compartment distribution system which should satisfy customer demands for shorter lead times, increased delivery frequency and improved quality of process and product. The simulation model quantifies logistic and financial performances in various alternative logistic scenarios for multi-compartment distribution in the catering supply chain. This stochastic simulation model was constructed on the basis of a value chain analysis yielding activities and performance indicators (PIs). The model proved to be accurate in its predictions when applied to a case situation taken from the Dutch CSC. It is concluded that discrete event simulation is an effective tool to evaluate promising logistic scenarios. The new, multi-compartment method of distribution allowed for a 14% decrease in total costs in the Dutch CSC while satisfying customer demands.