Module-Based Modeling of Production-Distribution Systems Considering Shipment Consolidation

A module-based modeling method was developed to analyze the production-distribution systems by using a discrete event simulation with ARENA. Excel VBA was also adopted to automatically generate the simulation programs. Using the proposed method, one can quickly create a multistage, multi-item supply chain system such as serials, convergent, divergent or general networks, for analyzing the performance of a supply chain. Both inventory control and shipment consolidation policy were considered in this study. A number of outputs can be used as a performance measure in the decision making; for example, transportation costs, inventory level and costs, and the fill rate. An actual application model was generated using the proposed method. The result shows that the module-based method is a powerful tool for modeling the supply chain systems