Ghalib Al Hammad 200901806 Fadhil Sunbul 201000246 Mustafa Al Nemer Prince Mohammed bin Fahd University Supply Chain Management supply chain modeling using simulation case study Ghalib Al Hammad 200901806 Fadhil Sunbul 201000246 Mustafa Al Nemer
Outline: Functionalities/Areas of supply chain management Introduction Expected benefits of supply chain management Why simulation? Conclusion
Introduction: Simulation permits the evaluation of operating performance prior to the execution of a plan the development of the simulation model is a necessity Due to the conflictions among the objectives of each organization and non-integrated decision making processest here has been a need for a new mechanism, which help to resolve those conflictions and to integrate processes.
Supply chain management is a process of integrating/utilizing suppliers, manufacturers, warehouses, and retailers, so that goods are produced and delivered at the right quantities, and at the right time, while minimizing costs as well as satisfying customer requirements.
Functionalities/Areas of supply chain management Demand planning - reduce forecast error. Master planning - Provide multi-site planning. Procurement – superior plans Transportation – better organized Manufacturing - Plan considering material which impact on manufacturing.
Expected benefits of supply chain management Throughput improvements Cycle time reduction – relatives Optimized transportation Increase customer responsiveness
Why simulation ? Poor plan will affect all. Most of simulation tools are designed as interactive tools to be used by a human planner not as real time decision-making tools. Benefits of supply chain simulation are as follows: It helps to understand the overall supply chain processes and characteristics by graphics/animation. It could dramatically minimize the risk of changes in planning process: By what-if simulation, user can test various alternatives before changing plan
DATA REQUIREMENTS FOR SUPPLY CHAIN MODELING Strategic decisions – long term Tactical decisions – mid Operational decisions - short term . Some of the questions the users might have: Which supplier policy is achieving best delivery performance under given demand pattern? Which supplier policy is most robust under demand fluctuation? Which is the most cost saving inventory policy under given demand pattern ?
CONCLUSION: The purpose of supply chain management is to meet customer requirement for assured delivery of high quality and low cost with smallest lead-time. To accomplish this idea, companies must include improved visibility into complete supply chain of their own strategy as well as those of their suppliers and consumers. Firms now should be alert enough to correct and re-establish procedure in real time.