Academic articles

This paper introduces a practical approach for the comprehensive simulation based planning and optimization of the production and logistics of a discrete goods manufacturer. Although simulation and optimization are well-established planning aides in production and logistics, their actual application in the field is still scarce, especially in small and medium-sized enterprises (SMEs). This is largely due to the complexity of the planning task and lack of practically applicable approaches for real-life planning scenarios. This paper provides a case study from the food industry, featuring a comprehensive planning approach based on simulation and optimization. The approach utilizes an offline-coupled multilevel simulation to smooth production and logistics planning via optimization, to optimally configure the production system using discrete-event simulation and to optimize the logistics network utilizing an agent-based simulation. The connected simulation and optimization modules can enhance the production logistics significantly, potentially providing a reference approach for similar industry applications.

The cost effective management of a supply chain under stochastic influences, e.g. in demand or the replenishment lead time, is a critical issue. In this paper a multi-stage and multi-product supply chain is investigated where each member uses the (s,Q)-policy for inventory management. A bi-objective optimization problem to minimize overall supply chain costs while maximizing service level for retailers is studied. Optimal parameter levels for reorder points and lot sizes are evaluated. In a first step a streamlined analytical solution approach is tested to identify optimal parameter settings. For real applications, this approach neglects the dynamics and interdependencies of the supply chain members. Therefore a simulation-based approach, combining an evolutionary algorithm with simulation, is used for the optimization. The simulation-based approach further enables the modelling of additional real world transportation constraints. The numerical simulation study highlights the potential of simulation-based optimization compared to analytical models for multi-stage multi-product supply chains.

Regional freight transportation policy planning is a difficult task, as few policy-planners have adequate tools to aid their understanding of how various policy formulations affect this complex, socio-technical system. In this paper, we develop a proof-of-concept model to simulate the impacts of public policies on freight transportation in a simulated region. We use the techniques of multi-disciplinary system design and optimization to analyze the formulation of regional freight transportation policies and examine the relative effects of policies and exogenous forces on the region in order to provide insight into the policy-planning process. Both single objective and multi-objective analysis is performed to provide policy-planners with a clear understanding of the trade-offs made in policy formulation.

Performance impacts of ordering and production control policies in the presence of capacity disruptions are studied on the real-life example of a retail supply chain with product perishability considerations. Constraints on product perishability typically result in reductions in safety stock and increases in transportation frequency. Consideration of the production capacity disruption risks may lead to safety stock increases. This trade-off is approached with the help of a simulation model that is used to compare supply chain performance impacts with regard to coordinated and non-coordinated ordering and production control policies.

This paper describes a simple educational simulation tool to teach about agent-based modeling (ABM) and land use and transportation (LUT) interactions in urbanized regions. The relationship between land use and transportation in urban areas shows a dynamic complexity which is difficult to model with static or very aggregated approaches. Agent-based simulation is becoming a standard to model certain complex systems including LUT interactions. The LUT modeling with Agent-Based simulation has been evolving over the last 20 years and there are some complete models being applied to real metropolitan areas. In this paper, only some of the ingredients of those models are presented in an easy to explain agent-based model that can be used in classes.

We consider time critical supply chains in the Australia dairy industry and re-covery policies in the presence of the ripple effect. Ripple effect is the impact of a dis-ruption on supply chain economic performance and disruption-based scope of changes needed in the supply structures and parameters to preserve the resilience. First, we de-scribe the ripple effect in general and one example of the ripple effect in the dairy supply chain in Australia. Second, we present a model for reactive recovery policies in the dairy supply chain under conditions of the ripple effect and exemplify them on a simulation example. The results of this study can be used in future for comparing proactive and re-active approaches to tackling the ripple effect from resilience and flexibility views.

Sourcing strategy analysis in the settings of supply chain flexibility in regard to single vs dual sourcing has been a well explored area over the last two decades. In recent years, single vs dual sourcing analy-sis has been increasingly introduced in supply chain disruption management. Since most of the deci-sion-support models for supply chain sourcing strategy adaptation in the case of disruptions presume real-time information and coordination, the issues of Big Data and business intelligence needs to be included into the consideration. A supply chain simulation model with consideration of capacity dis-ruption and Big Data along with experimental results are presented. Based on both literature analysis and modelling example, managerial insights are derived. A set of sensitivity experiments allows to illustrate the model’s behaviour. The analysis suggest recommendation on using single sourcing, ca-pacity flexibility, and dual sourcing for different combinations of demand and inventory patterns. The paper is concluded by summarizing the most important insights and outlining future research agenda.

In light of low-frequency/high-impact disruptions, the ripple effect has recently been intro-duced into academic literature on supply chain management. The ripple effect in the supply chain results from disruption propagation from the initial disruption point to the supply, pro-duction and distribution networks. While optimization modelling dominates this research field, the potential of simulation modelling still remains under-explored. The objective of this study is to reveal research gaps that can be closed with the help of simulation modelling.

Order picking is one of the most labor- and time-consuming processes in supply chains. Improving the performance of order picking is thus a frequently researched topic. Due to high cost pressure for warehouse managers the space in storage areas has to be used efficiently. Hence narrow-aisle warehouses where order pickers cannot pass as well as several order pickers working in the same area are common. This leads to congestion which is in this context referred to as picker blocking. This paper employs an agent-based simulation approach to investigate the effects of picker blocking in manual order picking systems with different combinations of routing policies for three order pickers in a rectangular warehouse with narrow-aisles.

Simulation is a widely used technique for analyzing and managing supply chains. Simulation software packages offer standard libraries for selected functions and application areas. However, no commercial or freeware simulation tool proposes building blocks specific to semiconductor manufacturing.