Title :
Applying Simulation in a Supply Chain Transformation Case
Author :
Ding, Hongwei ; Ren, Changrui ; Wang, Wei ; Dong, Jin
Author_Institution :
IBM China Res. Lab, Beijing
Abstract :
Supply chain transformation is an emerging service area in the market which aims at helping clients improve their operational efficiency and reduce costs. As a generic technique for the analysis of complex and dynamic systems, simulation could play an important role in this field. This paper presents a case study showing how simulation could be the key enablement for a supply chain transformation project. A methodology and tool developed by IBM China Research Lab has been applied in this joint project with a world-class supplier of home improvement tools. By applying simulation, the client is provided an insightful view about their business processes and inventory allocation strategy, which serves as the basis for the transformation implementation. Financial results show that simulation has addressed the key issues and provided the client accountable evaluation results for decision-making
Keywords :
decision making; inventory management; operations research; supply chain management; business processes; decision-making; home improvement tools; inventory allocation strategy; operational efficiency; supply chain transformation case; Analytical models; Business process re-engineering; Costs; Inventory control; Investments; Manufacturing; Procurement; Raw materials; Supply chain management; Supply chains;
Conference_Titel :
Simulation Conference, 2006. WSC 06. Proceedings of the Winter
Conference_Location :
Monterey, CA
Print_ISBN :
1-4244-0500-9
Electronic_ISBN :
1-4244-0501-7
DOI :
10.1109/WSC.2006.323137