Supply Chain Simulation Research Articles

The Building Blocks of Supply Chain Management

Supply chain management is one of the most complex business disciplines, comprising activities and interactions within and between many of the traditional functional areas of a firm and their channel partners. No longer can a company place its entire focus on its own operations because long-term success is becoming increasingly dependent on actions and decisions of upstream and downstream firms in the supply chain. Organizations that effectively collaborate with their supply chain partners position themselves for success in 21st-century markets. In order to prepare our students to make decisions in this complex environment, educators in operations research and management science must introduce students to the important interactions which are essential to effective supply chain management. We have developed a classroom supply chain simulation incorporating Lego™ bricks to highlight the flow of materials, products, and information through the channel. Students assume the responsibilities of various supply chain functions and must work together to provide finished products according to a production schedule and a rush customer order. The exercise was designed for an undergraduate introductory course in supply chain management, transportation and logistics, or management science in a business or industrial engineering school. It reinforces lectures and discussions about the different functional areas of the supply chain and serves to energize students about the remainder of their curriculum in the field. The follow-up assignments included with the simulation allow students to execute the major steps of the production planning process within the familiar context of the company used in the simulation exercise.

Object-oriented dynamic supply-chain modelling incorporated with production 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.

Supply chain simulation: generic models and application examples

This paper proposes a simulation system to support designing supply chain management operations. The most remarkable characteristic of this simulation is to represent business process activities in supply chain management. The organisation-based models are described in this paper. Activities of these models include supply-chain management operations, such as ‘demands predictions’, ‘manufacturing planning’, ‘material purchasing’, ‘manufacturing and transportation ordering’, and ‘products shipping’. These models also represent activities in manufacturing and transportation operations. This paper further demonstrates simulations of the typical forms of supply chain systems: these are ‘centre-controlled ordering system’, ‘vendor reorder-point system’, and ‘pull-operational system’. Finally, these simulation results are compared in view of supply chain performance.

Using simulation for supply chain analysis: reviewing and proposing distributed simulation frameworks

Simulation modelling and analysis can be an extremely effective tool for supply chain performance analysis. Many development proposals apply distributed simulation to this context. The aim of this paper is to present an overview of such standards, models and/or architectures, describing the technological choices related to each of them, and to propose how and when a distributed supply chain simulation framework is to be used. Our proposal includes brief examples and experiences from experimental researches. Though detailed implementation of the framework is not in the scope of this paper, references for further information are given. In order to provide a coherent presentation of the proposal, this paper will be organised as follows: Section 1 introduces the context of supply chain management. Section 2 shows how distributed supply chain simulation (DSCS) can be an extremely effective tool for performance analysis in supply chain planning and optimisation. Section 3 points out the available technologies and the technological aspects of a distributed simulation framework, such as inter-process communication (IPC) standards and real-time infrastructures. Section 4 describes how the DSCS framework can be utilised. Section 5 reports on framework validation and gives an outlook on the experimental researches. Finally, section 6 concludes the paper summarising the proposal and discussing its benefits and drawbacks.

Multi-agent modelling for simulation of customer-centric Supply Chain

The analysis of coordination among the Supply Chain (SC) members is a key factor for improving its performance. The highly dynamic demand induced by the volatility of customers requires defining tools to improve the performance. This paper presents an agent-based modelling concept for simulation of customer-centric SC. We describe the specificities of such SCs at the enterprise modelling domain level and propose an approach permitting to explicitly take into account the customers and their behaviours. The approach uses three levels of modelling, successively leading to a domain model, a Conceptual Agent Model (CAM) and an Operational Agent Model (OAM). A case study from the personalised golf club industry illustrates the proposed approach.

A hierarchical approach to supply chain simulation modelling using the Supply Chain Operations Reference model

Simulation is a very useful tool for predicting supply chain performance. There is a need for standard simulation elements to represent the activities in a supply chain. This paper describes a novel supply chain simulation framework that follows the Supply Chain Operations Reference (SCOR) model. We use this framework to build simulation models that integrate discrete event simulation and spreadsheets. The simulation models are hierarchical and use submodels that capture activities specific to supply chains. We also describe a study that used this framework to analyse the impact of rescheduling frequency on the supply chain performance.

An XML-centred approach to creating object-oriented supply chain simulation models

We propose an eXtensible Markup Language (XML)-centred approach to object-oriented simulation modelling of supply chains. Our approach is fundamentally different from previous work in that it uses XML to describe the supply chain itself, as opposed to using XML to store the simulation model. We define a system that includes an XML-based markup language and a 'simulator' that contains a library of fundamental supply chain simulation classes and a simulation 'model mapper'. The simulator processes the supply chain description document and generates an object-oriented simulation model using the class library. We detail working reference implementations of the markup language (Supply Chain Modelling Language (SCML)) and the simulator (Simulator for Integrated Supply Chain Operations (SISCO)).

A conceptual framework for supply chain modelling and simulation

Modelling and simulation can be used for a wide range of supply chain management applications, but the models usually have to be custom developed with large effort. There is a need for an organised framework that can facilitate model development through identification of standard applications, the right level of abstraction, and associated requirements for data. This paper proposes such a framework utilising the industry standard Supply Chain Operational Reference (SCOR) model features for its major dimensions. Use of the framework will enable rapid development of models and hence increased use of simulation for supply chain applications.

A KM motivated web-based supply chain simulator: facilitating e-learning for SMEs

The Knowledge Management (KM) driven dynamic supply chain holds future competitive potential for improved business performance. Dynamic supply chains can change their structures and chain partners dynamically. Hence, they are more complex to deal with, especially for the Small and Medium Sized Enterprises (SMEs). Global chains can have SMEs as multiple-autonomous players with varying technical cultures (affects knowledge mindsets), managerial background (affects decision knowledge) and SCM exposures (affects knowledge-sharing attitudes). These knowledge-sharing and knowledge-evolving activities offer several opportunities and challenges for SMEs to contribute effectively to the supply chain business performance as a virtual chain member. This paper presents the application of a web-based simulator model that is based on Decision Knowledge Sharing (DKS) for improved business performance in supply chains. This simulator offers different levels of knowledge sharing and allows a scenario analysis. It also offers an e-learning potential that motivates business performance improvement in SCM context.

Examining the potential of distributed supply chain simulation

Supply chains are not new, but their importance has grown in recent years due to globalisation, tough competition and the increasingly networked nature of business. They have also grown in size and scale and are sometimes short lived, due to the rapid pace of contemporary business. Simulation methods have long been applied in production-inventory systems and have found increased use in Supply Chain Management (SCM). Given that supply chains are distributed entities it seems sensible to consider the application of distributed computation to their simulation with the internet as a logical inter-operation medium. Here, we analyse why, despite its potential advantages, distributed supply chain simulation is not used in industry. To do so, we consider five potential drivers which might make distributed supply simulation attractive. These are used as the basis of an analysis of the relevant literature and a discussion of the obstacles to be overcome before such real-world applications become commonplace.

21204 離散型モデルとSDモデルと併用したサプライ・チェーン・シミュレーション(生産システムの新展開,OS8 生産システムの新展開)

This paper discusses a supply-chain simulation combining discrete-events with System-Dynamics models. Supply-chain operation includes manufacturing processes, transportation processes, and their management processes. Simulation of supply-chain should represent both such business operations and enterprise management environments like marketing, transportations, and etc. The proposed modeling framework can represent such complex supply-chain operations combining with social systems environment.

1302 複合モデルによるサプライチェーンシミュレーションとその応用(OS1 生産システムの設計・管理・評価)

This paper discusses a supply-chain simulation system that combines discrete-event models with system-dynamics models. Supply-chain systems include several different types of operational processes, such as manufacturing, sourcing, delivering, and their operational planning. Simulation of supply-chain should represent both such business processes and enterprise management activities, and etc. This paper proposes a framework of a compound simulation model that can represent such complex supply-chain operations combining with social systems environment.

A hierarchical framework for visualising and simulating supply chains in virtual environments

This paper presents research into applying virtual environment (VE) technology to supply chain management (SCM). Our research work has employed virtual manufacturing environments to represent supply chain nodes to simulate processes and activities in supply chain management. This will enable those who are involved in these processes and activities to gain an intuitive understanding of them, so as to design robust supply chains and make correct decisions at the right time. A framework system and its hierarchical structure for visualising and simulating supply chains in virtual environments are reported and detailed in this paper.

Distributed modelling and simulation of supply chains

The behaviour of supply chains, especially those in which several enterprises are involved, is often difficult to predict. For the analysis of such systems, which cannot be evaluated by analytical models, discrete event simulation is an adequate technology. The competence of the local engineers about the single chain elements has to be incorporated into the simulation models. This can be done best by establishing local models, representing the local section of the supply chain. Up to now, integrating such local models into one complete model was time consuming and error prone. Even more critical, local maintenance of partial models was inhibited. A new approach solves this problem, exploiting the advantages of distributed simulation. Furthermore, this approach provides encapsulation, if supply chain partners do not wish to publish details of their node to other partners. The interfacing description is based on the High Level Architecture (HLA) and generates Extensible Markup Language (XML) files, which provide a specification of each supply chain node and its interfaces.

SISCO: An object-oriented supply chain simulation system

We present SISCO, the Simulator for Integrated Supply Chain Operations, an object-oriented supply chain simulation tool. SISCO advances the concept of a supply chain simulator in a number of ways. With SISCO, we introduce a fundamentally new approach to supply chain specification, storage, and model generation. The user specifies the structure and policies of a supply chain with a GUI-based application and then saves the supply chain description in the open, XML-based Supply Chain Modeling Language (SCML) format. SISCO automatically generates the simulation model when needed by mapping the contents of the SCML file to a library of supply-chain-oriented simulation classes. SISCO's object-oriented, agent-style system architecture and detailed output improve upon current supply chain simulation tools.

A Modeling Framework for Supply Chain Simulation: Opportunities for Improved Decision Making*

ABSTRACTOwing to its inherent modeling flexibility, simulation is often regarded as the proper means for supporting decision making on supply chain design. The ultimate success of supply chain simulation, however, is determined by a combination of the analyst's skills, the chain members' involvement, and the modeling capabilities of the simulation tool. This combination should provide the basis for a realistic simulation model, which is both transparent and complete. The need for transparency is especially strong for supply chains as they involve (semi)autonomous parties each having their own objectives. Mutual trust and model effectiveness are strongly influenced by the degree of completeness of each party's insight into the key decision variables. Ideally, visual interactive simulation models present an important communicative means for realizing the required overview and insight. Unfortunately, most models strongly focus on physical transactions, leaving key decision variables implicit for some or all of the parties involved. This especially applies to control structures, that is, the managers or systems responsible for control, their activities and their mutual attuning of these activities. Control elements are, for example, dispersed over the model, are not visualized, or form part of the time‐indexed scheduling of events. In this article, we propose an alternative approach that explicitly addresses the modeling of control structures. First, we will conduct a literature survey with the aim of listing simulation model qualities essential for supporting successful decision making on supply chain design. Next, we use this insight to define an object‐oriented modeling framework that facilitates supply chain simulation in a more realistic manner. This framework is meant to contribute to improved decision making in terms of recognizing and understanding opportunities for improved supply chain design. Finally, the use of the framework is illustrated by a case example concerning a supply chain for chilled salads.

Development and benchmarking of an epoch time synchronization method for distributed simulation

In this paper, a new epoch time synchronization approach for distributed simulation federates is presented. The approach allows federates in the simulation system to advance their local times at full speed while it is safe to do so. That is, the simulation moves rapidly to the minimum next epoch (interaction) event time, which is calculated using the minimum sojourn time for each federate, and then slows for federation synchronization. The proposed approach is demonstrated using a manufacturing supply chain simulation composed of four distributed federates. Experiments are executed to benchmark the proposed epoch time synchronization method against conventional conservative synchronization methods to show typical improvements for simulation operation. The experimental results reveal that the proposed approach reduces supply chain simulation execution time significantly while maintaining complete accuracy as compared with traditional conservative federation coordination approaches.

MODELING AND DECENTRALIZED CONTROL OF INVENTORIES OF LINEAR DYNAMIC SUPPLY CHAINS

Models for the production, storing and distribution elements of supply chains are proposed based on linear differential equations. The models consider the dynamics of inventories and production rates. A bounded control for the inventories of the mentioned elements is introduced for regulating the inventory level to a desired value manipulating production or incoming rates. Stability conditions are provided together with tuning rules. A simulation of a multi-product petrochemical supply chain illustrates the application of the dynamic models and the performance of the proposed controller.

Supply chain simulation tools and techniques: a survey

The main contribution of this paper is twofold: • it surveys different types of simulation for supply chain management • it discusses several methodological issues. These different types of simulation are spreadsheet simulation, system dynamics, discrete-event simulation and business games. Which simulation type should be applied, depends on the type of managerial question to be answered by the model. The methodological issues concern validation and verification, sensitivity, optimisation, and robustness analyses. This sensitivity analysis yields a shortlist of the truly important factors in large simulation models with (say) a hundred factors. The robustness analysis optimises the important factors controllable by management, while accounting for the noise created by the important non-controllable, environmental factors. The various methodological issues are illustrated by a case study involving the simulation of a supply chain in the mobile communications industry in Sweden. In general, simulation is important because it may support the quantification of the benefits resulting from supply chain management.

1103 サプライチェーンリスクマネジメントのための影響評価手法 : 地震による供給能力低下への影響評価(OS1 生産システムの設計・管理・評価)

Supply chain management (SCM) improves efficiency of supply chains (SC) in terms of reduction of inventory and lead time. To the contrary, the pursuit of efficiency results in the vulnerability of SC and accelerates propagation of damage of risk incidents such as earthquake and factory fire. Therefore, supply chain risk management has became an important topic in SCM. In this paper, we propose a method of effects analysis of earthquake to the SC performance. Effects are evaluated in two steps. First, the effect of earthquake on the function, of a supply chain unit is evaluated by considering the malfunction of regional services such as transportation electric power and water supply. Secondly, propagation of the malfunction of the supply chain unit is evaluated by means of supply chain simulation.