Object-oriented dynamic supply-chain modelling incorporated with production scheduling [An article from: European Journal of Operational Research]

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Description:
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.