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Simulation and Optimization of the Multi-echelon Supply Chain Inventory Control System Based on Witness

Author: KangJianNing
Tutor: GuanZhiMin
School: Northeastern University
Course: Business management
Keywords: Multi-stage supply chain Inventory Simulation Witness Optimization
CLC: F224
Type: Master's thesis
Year: 2009
Downloads: 115
Quote: 0
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Abstract


The competition amongst companies has evolved into the campaign amongst supply chains in current society. Controlling inventory is one of the most important subjects under the circumstance of Supply Chain Management. Especially the supply chain inventory management to be able particularly to reduce the reserve effectively, reduces the fund backlog, raises overall system’s efficiency, the enhancement enterprise’s competitive power, so it has been received people’s widespread attention.This Paper is just under this background,focus on the supply chain management and the supply chain stock simulation, introduced Supply chain structure, performance evaluation methods and modeling process; Inventory control system of the need for simulation technology and the major modeling methods; Also to the computer simulation, the discrete element simulation and the Witness basic principle has carried on the introduction analysis, proposed based on the Witness emulation technique stock decision theory.In order to more effective control of inventory levels, thereby improving the entire supply chain optimization system, first, this paper use "Witness" simulation software to build a general multi-stage supply chain inventory system model. And then, based on this model, on the background of the supply chain management system of the M company, a simulation and optimization model of the supply chain was set up and the finance, the inner logistics, clients and the development in the future of the corporation were chosen as objectives of the optimization in the point of the Balance Scorecard. At the same time changeable resources were chosen as decision variables and the anneal arithmetic in Witness software was used to study the whole performance optimization of the supply chain. Finally, by analysis of data, we found that overall optimization have significant advantages in reducing cost of inventory in supply chain, improving supply chain efficiency and customer service levels. Therefore, the sense of whole supply chain should be strengthening in all supply chain nodes. And we should make efforts to optimize the overall of the supply chain to lower the cost of the entire supply chain, and achieve the objective of enhancing the competitiveness of the whole supply chain.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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