System Dynamics Model For The Simulation Of A Non Multi Echelon Supply Chain: Analysis and Optimization Utilizing The Berkeley Madonna Software

— In today’s global market, managing the entire supply chain becomes a key factor for a successful business. World-class organizations realize that non-integrated manufacturing and distribution processes together with poor relationships with suppliers and customers are a huge limit for their success. One of the most important aspect affecting the performance of a supply chain is the management of inventories. Inventory management in the supply chain system is quite a complex issue because demand at the upstream stage is dependent on orders from the downstream stage, and the final downstream stage receives orders from the market in uncertain conditions. Uncertainty is one of the major obstacle which limits the creation of an effective supply chain inventory model, able to optimize times and costs. Being the management of a complex inventory model too difficult to analyze with traditional analytical mathematical methods, computer simulation is widely used to study this kind of problems. This paper has the goal of modeling a single echelon supply chain and optimizing its inventories levels so to reduce the bullwhip effect and consequently minimize the supply chain costs. The supply chain here proposed consists of five stages – customer, retailer, wholesaler, distributor and factory – and its modeling is carried out through a system dynamics approach, utilizing the Berkeley Madonna software

Using logistic redesigner (Lo.R.D.) software for designing and simulating a steel supply chain

This paper regards the analysis of the development of a logistics and transportation network concerning a steel plant. The main goal is to search for the best scenario that allows to supply the plant and to distribute all the finished products to final customers in the most efficient way. To this aim, a proper simulation model has been developed and implemented utilizing Logistics Re Designer (Lo. R. D.) software. More specifically, three different transportation networks have been created: two “single” modal choice scenarios - by road or by rail – and an “intermodal” one. Another system variable regards the production capacity of the steel plant: three different types of capacity have been considered; so in total nine scenarios have been taken into consideration. The results obtained indicate that the intermodal solution is the most suitable to be adopted both in terms of total time – and consequently costs - and resources required to perform all the necessary operations. Future research will focus on the improvement of the solution found and on the development of an economical analysis