A simulation- and optimisation-based decision support system for an uncertain supply chain in a dairy firm

Authors:
Weiqi Li;Fang Zhang;Ming Jiang
Affiliations:
School of Management, University of Michigan Flint, 303 East Kearsley Street, Flint, MI 48502, USA.;SimuModel, Inc., 177 East Beijing Road, Nanjing, PRC.;School of Management, Shangdong Jianzhu University, Quangang Road, Jinan, PRC
Venue:
International Journal of Business Information Systems
Year:
2008

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Abstract

Supply Chain Management (SCM) refers to the problems where the decisions of supply, production and demand are integrated in a single framework. A typical supply chain faces uncertainty in terms of supply, production and demand. Therefore, SCM is largely about managing uncertainty and risks. This paper introduces a simulation- and optimisation-based decision support system that helps the scheduler in a dairy firm to schedule milk tankers and production in order to (1) meet the market demand, (2) minimise the difference between supply and demand, and (3) minimise the overall trip cost for collecting raw milk from milk farmers.