Using discrete-event simulation for evaluating non-linear supply chain phenomena

  • Authors:
  • Edgar E. Blanco;Xu (Cissy) Yang;Erica Gralla;Gary Godding;Emily Rodriguez

  • Affiliations:
  • MIT Center for Transportation & Logistics, Cambridge, MA;MIT Center for Transportation & Logistics, Cambridge, MA;MIT Center for Transportation & Logistics, Cambridge, MA;Intel Corporation, Phoenix, AZ;Intel Corporation, Phoenix, AZ

  • Venue:
  • Proceedings of the Winter Simulation Conference
  • Year:
  • 2011

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Abstract

We present a simulation model constructed in collaboration with Intel Corporation to measure and gauge the interaction of non-linear supply chain phenomena (such as waste, uncertainty, congestion, bullwhip, and vulnerability). A representative model that mimics part of Intel's supply chain from fabrication to delivery is modeled using discrete-event simulation in ARENA. A "phenomena evaluation" framework is proposed to link model inputs and supply chain phenomena in order to evaluate supply chain configurations. Using a sample supply chain decision (safety stock level determination) we follow the "phenomena evaluation" framework to illustrate a final recommendation. Results show that our supply chain phenomena evaluation approach helps better illustrate some trade-offs than an evaluation approach based only on the traditional metrics (cost, service, assets etc.).