Upload
bibhushan-jagannath
View
1.190
Download
0
Tags:
Embed Size (px)
Citation preview
Department of Mechanical EngineeringIndian Institute of Technology Delhi
Supply Chain Performance Supply Chain Performance Improvement: The Role of ITImprovement: The Role of IT
Presented By:Bibhushan
Entry No: 2002RME027
Supervisors:
Prof. S. Wadhwa and Prof. Anoop Chawla
Department of Mechanical EngineeringIndian Institute of Technology Delhi
22
Presentation OutlinePresentation Outline
Research Context and Motivation Research Objectives An Overview of the Research Work Significant Contributions of Research Work Publications Response to Examiner’s Comments
Department of Mechanical EngineeringIndian Institute of Technology Delhi
33
Research Context and MotivationResearch Context and Motivation
Simulation for Supply Chain Modeling and Analysis Used for analysis of complex systems Type of problems modeled range from tactical to strategic
Object-Oriented Simulation Modeling Detailed model of a complex system can be made by combining basic
building blocks Has advantages of inheritance, encapsulation, modularity, etc.
Multiple Entity Flow Perspective Five flows: Material, Information, Money, Resource, Decision
Focus on Inventory Management to improve IT facilitated SC performance
Department of Mechanical EngineeringIndian Institute of Technology Delhi
44
Research ObjectivesResearch Objectives
Highlight the research motivation to Develop an object-oriented supply chain
simulation-modeling environment Develop demonstrative models to illustrate the
efficacy of the approach in SC performance Study the inventory management in supply chains
working under stochastic demands
Department of Mechanical EngineeringIndian Institute of Technology Delhi
55
Research ObjectivesResearch Objectives Develop an object-oriented supply chain modeling
and simulation environment based on multiple-entity flow perspective which should be capable of: Modeling the flow of multiple entities Stochastic modeling Adding user-defined decision rules in addition to major
control decision rules User-friendly and cost effective Robust modeling by means of effective error handling and
fool-proofing in data input Distributed simulation
Department of Mechanical EngineeringIndian Institute of Technology Delhi
66
Research ObjectivesResearch Objectives Analyze inventory management along multiple criteria
(demand variance, inventory, service level etc.) Understand the effect of Expected Service Quality (ESQ) on
different inventory policies Determine optimal ESQ for each node Determine optimal Information sharing level for the ESQ levels found
above Understand the effect of ordering and capacity constraints on
different inventory policies Determine Optimal Ordering and Capacity constraints for each node
Determine the optimal information sharing level for ordering and capacity constraint levels determined above
Determine the effect of change in Coefficient of Variance (COV) on each supply chain node
Determine the optimal Information sharing level for different COV levels
Department of Mechanical EngineeringIndian Institute of Technology Delhi
77
Overview of Research WorkOverview of Research Work Organization of Thesis Conceptual Framework Simulation Modeling Environment Performance of Supply Chain under Controlled
Variability Optimizing ESQ for Supply Chain Nodes Optimizing Optimal Ordering and Capacity
Constraint levels for Each Supply Chain Node Understand the Effect of Changing COV on supply
chain
Department of Mechanical EngineeringIndian Institute of Technology Delhi
88
Organization Organization of Thesisof Thesis Chapter 5: Effect of Demand
Impulses on the Performance of Supply Chain
Chapter 6: Effect of Expected Service Quality (ESQ) on the Performance of Supply Chain
Chapter 7: Effect of Ordering and Capacity Constraints on the
Performance of Supply Chain
Chapter 8: Supply Chain Performance under Different Levels of Demand Variance
Chapter 9: Conclusions and Scope for Future Work
Start
Stop
Introduction
Experim
ental Setup
Effect of Im
pulse Am
plitude on the
Supply C
hain
Effect of B
alance Gap
on the S
upply Chain
Effect of N
umber of Im
pulses on the S
upply Chain P
erformance
Cha
pter Sum
mary and K
ey C
onclusions
Effect of Im
pulse Width on the
Supply C
hain
Intr
oduc
tion
Exp
erim
enta
l Set
up
RS
Opt
imiz
atio
n of
Sup
ply
Cha
in
with
DF
P
RS
Opt
imiz
atio
n of
Sup
ply
Cha
in
with
OQ
P
RS
Opt
imiz
atio
n of
Sup
ply
Cha
in
with
sS
P
RS
Opt
imiz
atio
n of
Sup
ply
Cha
in
with
sQ
P
Cha
pter
Sum
mar
y an
d K
ey
Col
clus
ion
s
Sel
ectio
n o
f Opt
imal
Info
rmat
ion
Sha
ring
Leve
l fo
r E
ach
Nod
e
Introduction
Experim
ental Setup
MnO
Q S
election for Each
Node in
the Supply C
hain
MxO
Q S
election for Each N
ode in the S
upply Chain
Selection o
f Optim
al Information
Sharing Level fo
r each Node
Cha
pter Sum
mary and K
ey C
onclusions
Intr
oduc
tion
Per
form
ance
of D
FP
-Bas
ed
Sup
ply
Cha
in u
nder
CO
V
Per
form
ance
of s
SP
-Bas
ed
Sup
ply
Cha
in u
nder
CO
V
Per
form
ance
of s
QP
-Bas
ed
Sup
ply
Cha
in u
nder
CO
V
Cha
pter
Sum
mar
y an
d K
ey
Col
clus
ion
s
Thesis S
umm
ary
Key C
onclusions
Industry Implications
Salient C
onstributions
Limitations and F
uture Directions
Chapter 1: Introduction
Research C
ontext and M
otivation
Research O
bjectives
Cha
pter Plan
Chapter 2: Literature Review
Intr
oduc
tion
Sup
ply
Cha
in S
imul
atio
n
Inve
nto
ry M
ana
gem
ent i
n S
uppl
y C
hain
Incr
ease
d V
isib
ility
thro
ugh
In
form
atio
n T
echn
olog
y (I
T)
Res
earc
h G
aps
Cha
pter
Sum
mar
y
Chapter 4: Development of Simulation Modelling
Environment and Simulation Models In
trod
uctio
n
Mod
ellin
g of
Sup
ply
Ch
ain
Bui
ldin
g B
lock
s
Mod
ellin
g S
upp
ly C
hain
Dec
isio
ns
Per
form
ance
Me
tric
s
Mod
ellin
g th
e S
uppl
y C
hain
Mod
el V
erifi
catio
n an
d V
alid
atio
n
Cha
pter
Sum
mar
y
Chapter 3: An Object-Oriented Simulation-Based Framework for Modelling Supply Chains
Introduction
A G
eneric Model o
f Supply C
hain
Obje
ct Oriented S
imulation
Modelling
Modelling of E
lementary S
upply
Cha
in Constructs
Hierarchy of O
bjects Used in
Supply C
hain Modelling
Cha
pter Sum
mary
Department of Mechanical EngineeringIndian Institute of Technology Delhi
99
Conceptual FrameworkConceptual Framework
A Generic Model of Supply Chain Object Oriented Modeling Perspective Modeling of Elementary Supply Chain
Constructs Hierarchy of Object Used in Supply Chain
Modeling Modeling Supply Chain Decisions
Department of Mechanical EngineeringIndian Institute of Technology Delhi
1010
Simulation Modeling EnvironmentSimulation Modeling Environment
Modeling the Supply Chain Building Blocks Modeling the manufacturing system Modeling the transports Modeling the Player Role Modeling the Supply Chain Node Modeling the Inter-Node Interactions
Defining Inter-Node Relationships Defining Inter-Node Lead Times Defining Inter-Node Speeds Defining Inter-Node Distances Defining Product Demands
Department of Mechanical EngineeringIndian Institute of Technology Delhi
1111
Simulation Modeling EnvironmentSimulation Modeling Environment
Modeling Supply Chain Decisions Source Selection Policies Inventory Control Decisions Transportation Decisions Production Planning Decisions
Performance Metrics Inventory Related Demand Related Service Related
Supply Chain Model for Research Model Verification and Validation
Department of Mechanical EngineeringIndian Institute of Technology Delhi
1212
Performance of Supply Chain under Performance of Supply Chain under Controlled VariabilityControlled Variability
Experimental Setup Demand impulses Simulation parameters Balancing the inventory policies Performance metrics considered
Effect of Transformed Relative Impulse Amplitude (TRIA) on the Supply Chain
Effect of TRIA on the Supply Chain using Demand Flow Policy (DFP)
Effect of TRIA on the Supply Chain using Order Q Policy (OQP) Effect of TRIA on the Supply Chain using (s, S) Policy (sSP) Effect of TRIA on the Supply Chain using (s, Q) Policy (sQP)
Department of Mechanical EngineeringIndian Institute of Technology Delhi
1313
Performance of Supply Chain under Performance of Supply Chain under Controlled VariabilityControlled Variability
Effect of Balance Gap (BG) on the Supply Chain Effect of BG on the Supply Chain using DFP
Effect of Negative Impulse BG (NIBG) Effect of Positive Impulse BG (PIBG)
Effect of BG on the Supply Chain using OQP Effect of NIBG Effect of PIBG
Effect of BG on the Supply Chain using sSP Effect of NIBG Effect of PIBG
Effect of BG on the Supply Chain using sQP Effect of NIBG Effect of PIBG
Department of Mechanical EngineeringIndian Institute of Technology Delhi
1414
Performance of Supply Chain under Performance of Supply Chain under Controlled VariabilityControlled Variability
Effect of Number of Impulses (NI) on the Supply Chain Effect of NI on the Supply Chain using DFP
Effect of Number of Negative Impulses (NNI) Effect of Number of Positive Impulses (NPI)
Effect of NI on the Supply Chain using DFP Effect of NNI Effect of NPI
Effect of NI on the Supply Chain using DFP Effect of NNI Effect of NPI
Effect of NI on the Supply Chain using DFP Effect of NNI Effect of NPI
Department of Mechanical EngineeringIndian Institute of Technology Delhi
1515
Performance of Supply Chain under Performance of Supply Chain under Controlled VariabilityControlled Variability
Effect of Impulse Width (IW) on the Supply Chain Effect of IW on the Supply Chain using DFP
Effect of Negative Impulse Width (NIW) Effect of Positive Impulse Width (PIW)
Effect of IW on the Supply Chain using DFP Effect of NIW Effect of PIW
Effect of IW on the Supply Chain using DFP Effect of NIW Effect of PIW
Effect of IW on the Supply Chain using DFP Effect of NIW Effect of PIW
Department of Mechanical EngineeringIndian Institute of Technology Delhi
1616
Department of Mechanical EngineeringIndian Institute of Technology Delhi
1717
Supply Chain ProcessesSupply Chain Processes Plan
Balances aggregate demand and supply Source
Procures goods and services to meet planned or actual demand
Make Transforms product to a finished state
Deliver Provides finished goods and services
Return Post-delivery customer support
Department of Mechanical EngineeringIndian Institute of Technology Delhi
1818
A Generic Model of Supply ChainA Generic Model of Supply Chain
Department of Mechanical EngineeringIndian Institute of Technology Delhi
1919
Supply Chain FlowsSupply Chain Flows
Primary Flows (Between Nodes) Material Flow Information Flow Cash Flow
Secondary Flows (Only inside Node) Resource Flow Decision Flow
Department of Mechanical EngineeringIndian Institute of Technology Delhi
2020
Object Oriented Object Oriented Supply Chain SimulationSupply Chain Simulation
Simulation is a technique where computers imitate the operations of various kinds of real-world facilities or processes (Law and Kelton 1991)
Discrete-event simulation Object oriented modelling OOPs based simulator for modeling flexible
supply chains
Department of Mechanical EngineeringIndian Institute of Technology Delhi
2121
Need for Object Oriented Need for Object Oriented Supply Chain SimulationSupply Chain Simulation
Supply chain flexibility offers many challenges and opportunities
It offers decision choices as the system evolves which is dynamic in nature
There is a need for developing a modeling environment to deal with flexibility and dynamic decision making
A OOPs based simulation system is developed and explored for its efficacy in this research
Department of Mechanical EngineeringIndian Institute of Technology Delhi
2222
Advantages of Advantages of Object Oriented ModelingObject Oriented Modeling
Inheritance A class of objects can itself be linked to one or several
super-classes from which it acquires characteristics and behavior
Encapsulation Describes its characteristics along with its relationships to
other components and the functionality of the object Allows structured development of the model Hides unimportant details
Modularity Provides a very high degree of code reusability
Department of Mechanical EngineeringIndian Institute of Technology Delhi
2323
Advantages of Advantages of Object Oriented ModelingObject Oriented Modeling
Allows the model builder to develop the models with much less effort
Suitable for modeling distributed systems having client-server architecture
Plug-and-play software capability Interoperability across the network Platform independence Allows complex systems to be constructed
with minimum of redundant work
Department of Mechanical EngineeringIndian Institute of Technology Delhi
2424
Advantages of Advantages of Object Oriented ModelingObject Oriented Modeling
A logical choice for developing custom or dedicated simulation models
Sub-components may be prefabricated by some expert group for a specific need or application
Productivity of software development improves if code is reused, since the specific modules are already extensively tested by their developers
Department of Mechanical EngineeringIndian Institute of Technology Delhi
2525
Advantages of Advantages of Object Oriented ModelingObject Oriented Modeling
Provides a natural mapping paradigm which allows one-to-one mapping between objects in the system being modeled and their abstractions in the object model Allows the developer to achieve a faster transition
of the conceptual model into the software implementation
Object-oriented models generally have a cleaner structure than the event oriented ones
Department of Mechanical EngineeringIndian Institute of Technology Delhi
2626
Overall ArchitectureOverall Architecture Basic building blocks are
used to create some lower level complex objects
Lower level objects are then used to define the higher level objects
Level 1 objects are made up of basic building blocks
Basic building blocks are combined with the object(s) of level 1 to form level 2 objects
Department of Mechanical EngineeringIndian Institute of Technology Delhi
2727
Object Oriented Modeling of Object Oriented Modeling of Supply ChainsSupply Chains
Supply chain decision making requires rapid and flexible modeling approach at various levels of detail
Object oriented modeling can be used for Designing and implementing reusable classes for
building models of supply chains Creating a supply chain object library
Facilitates rapid model development Aid in application of the modeling architecture to
specific scenarios at various levels of abstraction
Department of Mechanical EngineeringIndian Institute of Technology Delhi
2828
Object Oriented Features in Arena Object Oriented Features in Arena Simulation EnvironmentSimulation Environment
Offers model development in object oriented manner by means of objects called “modules”
Modules are essentially composed of other basic level modules
Once properly developed, these modules can be reused in other simulation models
However…
Department of Mechanical EngineeringIndian Institute of Technology Delhi
2929
Limitations of Object Oriented Limitations of Object Oriented Features in ArenaFeatures in Arena
Modules can be run only on systems having ARENA
Version Conflicts Not suitable for distributed computing Cost of buying this simulation package Additional cost of buying the customized
module libraries
What is the solution then?
Department of Mechanical EngineeringIndian Institute of Technology Delhi
3030
Generic Programming LanguagesGeneric Programming Languages
Not as easy as developing models using simulation packages
However, It is more general and the SC flexibility related
issues can be modeled in detail. Availability of customized object libraries for a
variety of applications can significantly reduce the time and effort involved in model building process
It offers platform independence to a large extent
Department of Mechanical EngineeringIndian Institute of Technology Delhi
3131
IT tool used: VB.NetIT tool used: VB.Net
Ease of designing the user interface Now fully object-oriented Provides a very high degree of platform
independence only for Windows based platforms however
Supply chain flexibility and dynamic decision making can be developed as a customized option.
Department of Mechanical EngineeringIndian Institute of Technology Delhi
3232
Research GapsResearch Gaps
Need to develop simulation tools ideally suited for flexible supply chain simulation Effective modeling of Supply Chain Flexibility Web-based simulation environment
Demonstrate benefits of collaborative decision making Non-deterministic and dynamic modeling Analyzing the impact of different control
decisions in an integrated manner Distributed computing needs to be explored
Department of Mechanical EngineeringIndian Institute of Technology Delhi
3333
Research GapsResearch Gaps
Need to study the impact of information sharing under different IT options
Supply Chain performance under different levels of Demand History, Service Level, Demand Variance needs to be studied
There is need for demonstrative models to illustrate the benefits of IT tools focused on modeling of the flexible supply chains.
Department of Mechanical EngineeringIndian Institute of Technology Delhi
3434
Overview of the Research WorkOverview of the Research Work Development of the IT tools for modeling Flexibility
and Dynamic decision making Manufacturing systems and supply chains were modelled
in terms of five types of flows: information flow, decision flow, material flow, resource flow and money flow
Extended the Multiple Entity flow perspective proposed by Wadhwa & Rao (2003)
Development of demonstrative simulation models for illustrating supply chain performance improvement by the use of IT
Department of Mechanical EngineeringIndian Institute of Technology Delhi
3535
Overview of the Research WorkOverview of the Research Work Supply Chain performance improvement under
flexibility and dynamic decision making. Focus on inventory management.
Comparison of Inventory Control Policies under Deterministic Variability
Effect of Demand History on Supply Chain Performance
Effect of Service Level on Supply Chain Performance
Effect of Demand Variance on Supply Chain Performance
Department of Mechanical EngineeringIndian Institute of Technology Delhi
3636
Supply Chain Management DefinedSupply Chain Management Defined
SCM is “the integration of business processes from end-user through original suppliers that provides products, services, and information that add value for customers” (Lambert et. al. (1998)
Department of Mechanical EngineeringIndian Institute of Technology Delhi
3737
Modeling ElementaryModeling ElementarySupply Chain ConstructsSupply Chain Constructs
Classification of Objects Multiple Entity Flow Perspective Action Points as Processes in the System
Department of Mechanical EngineeringIndian Institute of Technology Delhi
3838
Classification of ObjectsClassification of Objects
Department of Mechanical EngineeringIndian Institute of Technology Delhi
3939
Multiple Entity Flow PerspectiveMultiple Entity Flow Perspective
Department of Mechanical EngineeringIndian Institute of Technology Delhi
4040
Action Points as Action Points as Processes in the SystemProcesses in the System
Department of Mechanical EngineeringIndian Institute of Technology Delhi
4141
Hierarchy of Object Used inHierarchy of Object Used inSupply Chain ModelingSupply Chain Modeling
Modeling of a Supply Chain Network Modeling of Supply Chain Nodes Modeling of Supply Chain Operations Modeling the Manufacturing System
Department of Mechanical EngineeringIndian Institute of Technology Delhi
4242
Levels of Abstraction forLevels of Abstraction forSupply Chain ModelingSupply Chain Modeling
Department of Mechanical EngineeringIndian Institute of Technology Delhi
4343
Modeling of aModeling of aSupply Chain NetworkSupply Chain Network
As a collection of supply chain nodes Each node is a fully autonomous unit Define relationships between each pair of
nodes Two types of relationships
Buyers (can select Sellers) Sellers (can only be selected)
Constrained relationships By the level of respective nodes
Department of Mechanical EngineeringIndian Institute of Technology Delhi
4444
Integration of Supply Chain NodesIntegration of Supply Chain Nodes
Department of Mechanical EngineeringIndian Institute of Technology Delhi
4545
Multiple Supply Chains in a Multiple Supply Chains in a Collection of Supply Chain Nodes Collection of Supply Chain Nodes
Department of Mechanical EngineeringIndian Institute of Technology Delhi
4646
Modeling of Supply Chain NodesModeling of Supply Chain Nodes Two kinds of Nodes:
Manufacturing (Value-adding) Non-Manufacturing (store the material and supply it to
other nodes) Flows through each node:
Material flow Information flow Money flow
Flows Inside node Resource Flow Decision Flow
Department of Mechanical EngineeringIndian Institute of Technology Delhi
4747
Modeling of Supply Chain NodesModeling of Supply Chain Nodes
Five Processes Plan, Source, Make, Deliver and Return
Return Out of scope of this work
Store Additional Process
Department of Mechanical EngineeringIndian Institute of Technology Delhi
4848
A Manufacturing NodeA Manufacturing Node
Department of Mechanical EngineeringIndian Institute of Technology Delhi
4949
A Non-manufacturing NodeA Non-manufacturing Node
Department of Mechanical EngineeringIndian Institute of Technology Delhi
5050
Integration Integration of Majorof MajorSupply Supply Chain Chain OperationsOperations
Department of Mechanical EngineeringIndian Institute of Technology Delhi
5151
MakeMake
Manufacturing operations Product quantity is decided by planning Produces the goods according to the control
policies determined by production planning Routing Scheduling
Department of Mechanical EngineeringIndian Institute of Technology Delhi
5252
SourceSource
Decides the sellers from whom to procure necessary goods
A sourcing policy is a decision rule that determines the best seller(s) out of a number of available sellers in accordance with some predefined criterion e.g. Maximum Inventory, Minimum Lead Time etc.
Department of Mechanical EngineeringIndian Institute of Technology Delhi
5353
Deliver (Transportation)Deliver (Transportation)
Out of a number of transports one or more transports are selected based on some pre-defined transportation policy like Maximum Speed Minimum Cost Maximum Capacity
Department of Mechanical EngineeringIndian Institute of Technology Delhi
5454
Inventory ManagementInventory Management
Concerned with maintenance of sufficient amount of inventory to fulfil demands
Whenever the inventory of any item falls below the critical levels, the inventory management sends the order(s) to procure the required material or product to planning operation
Planning subsequently decides either to make or buy the required product
Department of Mechanical EngineeringIndian Institute of Technology Delhi
5555
Modeling the Modeling the Manufacturing SystemManufacturing System
Can be modeled by combining two basic building blocks Materials (Transformed or Consumed) Resources (Negligible Transformation/Consumption)
One or more resource is used to perform some operation on the material (called process)
Each product requires some processes to be performed in a specific sequence
Two decisions are taken before each process Resource selection Material selection
Department of Mechanical EngineeringIndian Institute of Technology Delhi
5656
Typical Material Processing in a Typical Material Processing in a Manufacturing System Manufacturing System
Department of Mechanical EngineeringIndian Institute of Technology Delhi
5757
Modeling Supply Chain DecisionsModeling Supply Chain Decisions
Source Selection Policies Inventory Control Decisions Transportation Decisions Production Planning Decisions
Department of Mechanical EngineeringIndian Institute of Technology Delhi
5858
Source Selection PoliciesSource Selection Policies Classification (based on no. of sources)
Single Source Multiple Source Transport Based.
Source Selection Rules Shortest distance Minimum cost Maximum inventory Preference selection Probability based selection (only for multiple source
policies) User defined selection (only for single source policies)
Department of Mechanical EngineeringIndian Institute of Technology Delhi
5959
Source Selection Policies Source Selection Policies Start
R = Sourcing RuleN = Number of Sources
No
R = Shortest distance
Arrange sources in ascending order
of their distance
YesR = Minimum
Cost
No
Arrange sources in ascending order
of cost of the required product
YesR = Maximum
Inventory
No
Arrange sources in ascending order
of the available inventory
Yes R = Preference
No
Arrange sources in ascending order of the preference
Yes
N =1Select the first
source from the listYes
R = User Defined
Select the defined Source
Yes
Send Orders According to Probability of each source
No
Stop
Send Multiple Orders
No
Department of Mechanical EngineeringIndian Institute of Technology Delhi
6060
Probability Probability Based Source Based Source SelectionSelection
Start
Get Source List
i = Source IndexQ = Order QuantitySi = Quantity requested from source IWi= Probability of source i
i = 1
Place an order of Quantity Si with
source i
i = Number of sources
Si = Q * Wi
i = i + 1
No
Stop
Department of Mechanical EngineeringIndian Institute of Technology Delhi
6161
Multiple Multiple Source Source SelectionSelection
Start
Get the pre-ordered source list
i = 1(Select the first source)
Q ≤ Si
i = Source IndexQ = Required QuantitySi= Inventory available at source i
i = i + 1(Select Next Source)
No
Place an order of Si units with source i
Place an order of Q units with source i
Yes
Q = Q - Si
i = Number of Souces
No
Yes
Stop
Department of Mechanical EngineeringIndian Institute of Technology Delhi
6262
Inventory Control DecisionsInventory Control Decisions Demand Flow Order Q Order Upto (s, Q) Policy (s, S) Policy Updated (s, S) Policy Days of Supply, Demand Based (DOS
Demand) Days of Supply, Forecast Based (DOS
Forecast)
Department of Mechanical EngineeringIndian Institute of Technology Delhi
6363
Inventory Control DecisionsInventory Control DecisionsStart
P = Demand flow
P = Inventory PolicyO = Order QuantityI = Inventory
P = Order Q
P = Order to S
P = s,S
No
O = Demand
YesNo
O = Q
Yes
O = S - I
Yes
No
I < s
O = S - I
Yes
Yes
O = 0
No
P = s,Q
I < s
O = Q
Yes
Yes
O = 0
No
No
P = Updated s
No
O = Updated_s()
P = DOS (Demand)
No
Yes
O = DOS_Demand
Yes
No
O = DOS_Forecast
Stop
Department of Mechanical EngineeringIndian Institute of Technology Delhi
6464
Updated (s, S) PolicyUpdated (s, S) Policy
Start
Get demand data
n = Number of Periodsd = Number of data pointsm = Maximum number of data pointss = Reorder levelt = Average lead timeZ = Standard normal variate corresponding to required service level
d > m
n = m
n = dYes
No
Avg = sample average of of previous n periodsσ = sample standard deviation of previous n periods
s = Avg * t + Z * σ
Inventory < s
Order Quantity = s
Yes Order Quantity = 0
No
s < Maximum order quantity
YesOrder Quantity =
Maximum Order Quantity
No
Stop
Department of Mechanical EngineeringIndian Institute of Technology Delhi
6565
Updated (s, S) PolicyUpdated (s, S) Policy Reorder Level (s) is calculated as
Where LT is the lead time of the selected source σ is the estimate of standard deviation of the demand in
previous n periods Z is the standard normal variate corresponding to the
desired service level Special Cases
n-period moving average (Z = 0) Demand Flow (n = 1, Z = 0)
ZLTs
Department of Mechanical EngineeringIndian Institute of Technology Delhi
6666
DOS DemandDOS Demand
Start
n = Minimum days of supply to keepN = Maximum days of supply to keep
Get Demand Data
MinQ = Moving average of previous n periods
MaxQ = Moving average of previous N periods
Inventory < MinQ
Yes
Order Quantity = MaxQ - Inventory Order Quantity = 0
No
Stop
Department of Mechanical EngineeringIndian Institute of Technology Delhi
6767
DOS ForecastDOS Forecast
Start
n = Minimum days of supply to keepN = Maximum days of supply to keep
Get Demand Data
MinQ = Sum of forecasts of future n periods
MaxQ = Sum of forecasts of future N periods
Inventory < MinQ
Yes
Order Quantity = MaxQ - Inventory Order Quantity = 0
No
Stop
Department of Mechanical EngineeringIndian Institute of Technology Delhi
6868
Transportation DecisionsTransportation Decisions
Each transport uses some transportation mode e.g. rail, road, air, or water
Depending on the location, not all transports may be possible for a node pair
Alternative transports are selected based on which transport modes are available between a node pair
Department of Mechanical EngineeringIndian Institute of Technology Delhi
6969
Transportation DecisionsTransportation Decisions Alternative transports differ according to their
specific characteristics Each transport has some properties like capacity
speed, cost, etc Transport selection rules
Maximum speed Maximum volume capacity Maximum weight capacity Minimum cost User defined transport selection
Department of Mechanical EngineeringIndian Institute of Technology Delhi
7070
Transportation Transportation Selection PoliciesSelection Policies
Start
R = Selection Rule
R = Maximum Speed
Find Fastest Transport
YesR = Maximum
Weight Capacity
No
Find transport with Maximum weight
capacity
YesR = Maximum
Volume Capacity
No
Find transport with Maximum volume
capacity
YesR = Minimum Cost
No
Find transport with Minimum Cost
Yes
Find the user defined transport
No
Stop
Return selected Transport
Department of Mechanical EngineeringIndian Institute of Technology Delhi
7171
More Classifications in TransportsMore Classifications in Transports
The loading in the selected transport may again be of two types Pooled (all the products shipped between a node-
pair are sent through the same transport) Non-pooled (different products are shipped
through different transports) Based on capacity utilization of transport
FTL (Full Truck Load) LTL (Less than Truck Load)
Department of Mechanical EngineeringIndian Institute of Technology Delhi
7272
Transport Transport selection with selection with pooled pooled transportstransports
Start
Pooled Transports
P = ProductS = SenderR =ReceiverT = Transport PolicyTs = Transport Selection Rule
Get Transport List for Pooled Transports
Get Transport List for Non-pooled Transports
Yes
No
Select Transport
Q = Quantity to be shippedS = Quantity that could be added to selected transport
S ≥ Q
Add S units to the selected transportQ = Q - S
No
Add Q units to the selected transport
Yes
Shipment Policy = FTL
Release selected shipment
No
Is Selected transport full
Yes
Yes
Stop
No
Department of Mechanical EngineeringIndian Institute of Technology Delhi
7373
Transport Transport selection selection with non with non pooled pooled transportstransports
Start
P = ProductS = SenderR = ReceiverL() = Transport listi = Transport IndexTi = ith Transport
i = 1
Sender of Ti = S
Receiver of Ti = R
Yes
i = i +1
No
No
Add Ti to L() Yes
i = Number of transports
No
Stop
Return L()
Yes
Receiver of Ti = R
Yes
No
Department of Mechanical EngineeringIndian Institute of Technology Delhi
7474
Production Planning DecisionsProduction Planning Decisions
Routing Concerned with selection of best possible
resources out of a number of available resources Scheduling
Decides the timing of each process or each job in the manufacturing system
Quantity to be produced is determined by the inventory policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
7575
Production Planning DecisionsProduction Planning Decisions Options Available
Produce as directed by inventory policy Produce short batches
Once the product is routed to a resource, it is added to the queue of the corresponding resource
Routing policy is used to select the next resource for the next process when current processing is over
Sequence of resource selection and allocation continues until all the processes on the job are completed
Department of Mechanical EngineeringIndian Institute of Technology Delhi
7676
Production Production Planning Planning OperationOperation
Start
Evaluate Make Quantity
Make Quantity =Q
Acquire Raw Materials
Yes
Select First Process
Select Machine based on Routing
Perform Processing
Select Next Process
Is current process the last process
No
Add products to Inventory
Yes
Stop
No
Q = Quantity to be made
Short Batches Possible
No
Yes
Make Quantity >0
Yes
No
Department of Mechanical EngineeringIndian Institute of Technology Delhi
7777
Determining the Determining the Make QuantityMake Quantity
Start
Get Quantity required to be
made (Qm)
Get Available Inventory of each
Raw Material
Qm = Quantity to makeRi = ith Raw material of the productQ(Ri) = Available quantity of RiNi = Number off ith raw material required for each product
Q > Q(Ri)*Ni
i = 1Q = Q(Ri) * Ni
i = i + 1
Q = Q(Ri) * Ni Yes
No
i= Number of Raw materials
No
Stop
Department of Mechanical EngineeringIndian Institute of Technology Delhi
7878
Resource Selection PoliciesResource Selection PoliciesR = Minimum
Processing Time
R= Routing Selection Rule
Start
Select the Resource with Minimum
Processing Time
Yes R = MinimumSetup Time
Select the Resource with Minimum Loading Time
Yes
No
R = Minimum Cost
Select the Resource with Minimum Cost
Yes R = MinimumQueue
Select the Resource with Minimum Queue
Yes
No
No
R = Minimum Loading
Select the Resource with Minimum Loading
Yes
No
No
Select the User-defined Resource
Allocate the selected resource to the part
Stop
Department of Mechanical EngineeringIndian Institute of Technology Delhi
7979
Modeling the Modeling the Supply Chain Building BlocksSupply Chain Building Blocks
Consists of Modeling the Manufacturing System Modeling the Transports Modeling the Player Role Modeling the Supply Chain Node Modeling Node Interactions
Different objects in the SC Network are linked with each other, they can be represented using the concepts of Relational Database Management System (RDBMS)
Department of Mechanical EngineeringIndian Institute of Technology Delhi
8080
Modeling the Modeling the Manufacturing Manufacturing SystemSystem
Department of Mechanical EngineeringIndian Institute of Technology Delhi
8181
Modeling Modeling the the TransportsTransports
Department of Mechanical EngineeringIndian Institute of Technology Delhi
8282
Modeling the Player RoleModeling the Player Role
Department of Mechanical EngineeringIndian Institute of Technology Delhi
8383
Modeling Modeling the Supply the Supply Chain Chain NodeNode
Department of Mechanical EngineeringIndian Institute of Technology Delhi
8484
Performance MetricsPerformance Metrics
Inventory related Minimum Inventory Maximum Inventory Total Inventory Average Inventory Standard Deviation of Inventory
Department of Mechanical EngineeringIndian Institute of Technology Delhi
8585
Performance Metrics UsedPerformance Metrics Used Service related
Backorders Stockouts Fill Rate Service Level
Demand related Minimum Demand Maximum Demand Total Demand Average Demand Standard Deviation of Demand
Department of Mechanical EngineeringIndian Institute of Technology Delhi
8686
Supply Chain Performance Under Supply Chain Performance Under Deterministic VariabilityDeterministic Variability
Experimental Setup Demand Impulses Simulation Parameters Balancing the Inventory Policies
Effect of Impulse Amplitude Effect of Impulse Width Effect of Step Width Effect of Number of Impulses
Department of Mechanical EngineeringIndian Institute of Technology Delhi
8787
Demand ImpulsesDemand Impulses
Department of Mechanical EngineeringIndian Institute of Technology Delhi
8888
Simulation ParametersSimulation ParametersParameter Demand
AmplitudeBalance Gap
Number of Impulses
Step Width
Run Length (Days) 110 110 110 110
Warmup Period (Days)
20 20 20 20
Observation Period (Days)
90 90 90 90
Information Lead Time (Days)
2 2 2 2
Transportation Lead Time (Days)
2 2 2 2
Mean Demand 100 100 100 100
Impulse Amplitude Variable 0.9 and 1.9 0.9 and 1.9 0.9 and 1.9
Balance Gap 0 Variable 0 0
Number of Impulses 1 1 Variable 1
Impulse Width 1 1 1 Variable
Department of Mechanical EngineeringIndian Institute of Technology Delhi
8989
Balancing the PoliciesBalancing the Policies Each policy was balanced so that all of them gave same
results for the test demand under steady state condition Demand Flow: The test demand was a constant demand of
100 units per week. To fulfill the current obligations, each node has to keep a minimum of 100 units. Each node has to keep an initial inventory equal to four weeks of demand. As a result, an initial inventory of 400 units was allocated to each node.
Order Q: In this policy, orders are placed even when no there is no demand. Therefore, inventory builds up for each node, until the actual demand is received. As a result, all nodes only need to keep an inventory equal to the value of demand per week (100 units).
Department of Mechanical EngineeringIndian Institute of Technology Delhi
9090
Balancing the PoliciesBalancing the Policies
(s, Q) Policy: The initial inventories for each node were same as those for demand flow policy. A reorder point (s) of 400 and order quantity (Q) of 100 was set for this policy.
(s, S) Policy: Initial inventories were kept same as the demand flow policy. Both reorder point (s) and reorder level (S) were set to be 100 units.
Department of Mechanical EngineeringIndian Institute of Technology Delhi
9191
Effect of Impulse AmplitudeEffect of Impulse Amplitude
Effect on Individual Supply Chain Nodes Effect on Retailer Effect on Wholesaler Effect on Distributor Effect on Manufacturer
Effect of each policy on the Supply Chain Effect along the Supply Chain
Department of Mechanical EngineeringIndian Institute of Technology Delhi
9292
Effect of Amplitude on Effect of Amplitude on Individual Supply Chain NodesIndividual Supply Chain Nodes
Performance Metrics Used Total Inventory Std. Dev. of Inventory Backorders Stockouts Std. Dev. of Demands
Department of Mechanical EngineeringIndian Institute of Technology Delhi
9393
Retailer’s Total InventoryRetailer’s Total Inventory
0
200
400
600
800
1000
1200
1400
1600
1800
2000
0 1 2 3 4 5 6 7
Impulse Amplitude
To
tal I
nv
en
tory
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
9494
Retailer’s Std. Dev. of InventoryRetailer’s Std. Dev. of Inventory
0
20
40
60
80
100
120
0 1 2 3 4 5 6 7
Impulse Amplitude
Std
. De
v. O
f In
ve
nto
ry
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
9595
Retailer’s BackordersRetailer’s Backorders
0
200
400
600
800
1000
1200
1400
1600
1800
2000
0 1 2 3 4 5 6 7
Impulse Amplitude
Ba
ck
ord
ers
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
9696
Retailer’s StockoutsRetailer’s Stockouts
0
2
4
6
8
10
12
14
16
18
20
0 1 2 3 4 5 6 7
Impulse Amplitude
Sto
ck
ou
ts
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
9797
Wholesaler’s Total InventoryWholesaler’s Total Inventory
0
20
40
60
80
100
120
0 1 2 3 4 5 6 7
Impulse Amplitude
To
tal I
nv
en
tory
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
9898
Wholesaler’s Std. Dev. of InventoryWholesaler’s Std. Dev. of Inventory
0
10
20
30
40
50
60
70
80
90
0 1 2 3 4 5 6 7
Impulse Amplitude
Std
. De
v. O
f In
ve
nto
ry
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
9999
Wholesaler’s BackordersWholesaler’s Backorders
0
500
1000
1500
2000
2500
0 1 2 3 4 5 6 7
Impulse Amplitude
Ba
ck
ord
ers
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
100100
Wholesaler’s StockoutsWholesaler’s Stockouts
0
5
10
15
20
25
0 1 2 3 4 5 6 7
Impulse Amplitude
Sto
ck
ou
ts
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
101101
Wholesaler’s Std. Dev. of DemandWholesaler’s Std. Dev. of Demand
0
20
40
60
80
100
120
140
0 1 2 3 4 5 6 7
Impulse Amplitude
Std
. De
v. o
f D
em
an
d
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
102102
Distributor’s Total InventoryDistributor’s Total Inventory
0
200
400
600
800
1000
1200
1400
1600
1800
2000
0 1 2 3 4 5 6 7
Impulse Amplitude
To
tal I
nv
en
tory
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
103103
Distributor’s Std. Dev. of InventoryDistributor’s Std. Dev. of Inventory
0
20
40
60
80
100
120
0 1 2 3 4 5 6 7
Impulse Amplitude
Std
. De
v. O
f In
ve
nto
ry
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
104104
Distributor’s BackordersDistributor’s Backorders
0
200
400
600
800
1000
1200
1400
1600
1800
2000
0 1 2 3 4 5 6 7
Impulse Amplitude
Ba
ck
ord
ers
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
105105
Distributor’s StockoutsDistributor’s Stockouts
0
2
4
6
8
10
12
14
16
18
20
0 1 2 3 4 5 6 7
Impulse Amplitude
Sto
ck
ou
ts
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
106106
Distributor’s Std. Dev. of DemandDistributor’s Std. Dev. of Demand
0
20
40
60
80
100
120
0 1 2 3 4 5 6 7
Impulse Amplitude
Std
. De
v. o
f D
em
an
d
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
107107
Manufacturer’s Total InventoryManufacturer’s Total Inventory
0
200
400
600
800
1000
1200
1400
1600
1800
2000
0 1 2 3 4 5 6 7
Impulse Amplitude
To
tal I
nv
en
tory
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
108108
Manufacturer’s Manufacturer’s Std. Dev. of InventoryStd. Dev. of Inventory
0
20
40
60
80
100
120
0 1 2 3 4 5 6 7
Impulse Amplitude
Std
. De
v. O
f In
ve
nto
ry
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
109109
Manufacturer’s BackordersManufacturer’s Backorders
0
200
400
600
800
1000
1200
1400
1600
1800
2000
0 1 2 3 4 5 6 7
Impulse Amplitude
Ba
ck
ord
ers
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
110110
Manufacturer’s StockoutsManufacturer’s Stockouts
0
2
4
6
8
10
12
14
16
18
20
0 1 2 3 4 5 6 7
Impulse Amplitude
Sto
ck
ou
ts
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
111111
Manufacturer’s Manufacturer’s Std. Dev. of DemandStd. Dev. of Demand
0
10
20
30
40
50
60
70
80
0 1 2 3 4 5 6 7
Impulse Amplitude
Std
. De
v. o
f D
em
an
d
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
Effect of Amplitude on Effect of Amplitude on Supply Chain as a WholeSupply Chain as a Whole
Demand Flow Policy
Order Q Policy
(s, S) Policy
(s, Q) Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
Demand Flow PolicyDemand Flow Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
114114
Total InventoryTotal Inventory
0
200
400
600
800
1000
1200
1400
1600
0 1 2 3 4 5 6 7
Impulse Amplitude
To
tal I
nv
en
tory
Retailer Wholesaler Distributor Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
115115
Std. Dev. of InventoryStd. Dev. of Inventory
0
20
40
60
80
100
120
0 1 2 3 4 5 6 7
Impulse Amplitude
Std
. De
v. O
f In
ve
nto
ry
Retailer Wholesaler Distributor Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
116116
BackordersBackorders
0
100
200
300
400
500
600
0 1 2 3 4 5 6 7
Impulse Amplitude
Ba
ck
ord
ers
Retailer Wholesaler Distributor Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
117117
StockoutsStockouts
0
1
2
3
4
5
0 1 2 3 4 5 6 7
Impulse Amplitude
Sto
ck
ou
ts
Retailer Wholesaler Distributor Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
118118
Std. Dev. of DemandStd. Dev. of Demand
0
10
20
30
40
50
60
70
0 1 2 3 4 5 6 7
Impulse Amplitude
Std
. De
v. O
f D
em
an
d
Retailer Wholesaler Distributor Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
119119
Total InventoryTotal Inventory
0
2000
4000
6000
8000
10000
12000
0 5 10 15 20 25 30 35
Impulse Amplitude
To
tal I
nv
en
tory
Retailer Wholesaler Distributor Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
120120
Std. Dev. of InventoryStd. Dev. of Inventory
0
100
200
300
400
500
600
700
800
900
1000
0 5 10 15 20 25 30 35
Impulse Amplitude
Std
. De
v. o
f In
ve
nto
ry
Retailer Wholesaler Distributor Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
121121
BackordersBackorders
0
500
1000
1500
2000
2500
3000
3500
0 5 10 15 20 25 30 35
Impulse Amplitude
Ba
ck
ord
ers
Retailer Wholesaler Distributor Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
122122
StockoutsStockouts
0
0.2
0.4
0.6
0.8
1
1.2
0 5 10 15 20 25 30 35
Impulse Amplitude
Ba
ck
ord
ers
Retailer Wholesaler Distributor Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
123123
Std. Dev. of DemandStd. Dev. of Demand
0
50
100
150
200
250
300
350
0 5 10 15 20 25 30 35
Impulse Amplitude
Std
. De
v. o
f D
em
an
d
Retailer Wholesaler Distributor Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
Order Q PolicyOrder Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
125125
Total InventoryTotal Inventory
0
20
40
60
80
100
120
0 1 2 3 4 5 6 7
Impulse Amplitude
To
tal I
nv
en
tory
Retailer Wholesaler Distributor Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
126126
Std. Dev. of InventoryStd. Dev. of Inventory
0
10
20
30
40
50
60
70
80
90
0 1 2 3 4 5 6 7
Impulse Amplitude
Std
. De
v. O
f In
ve
nto
ry
Retailer Wholesaler Distributor Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
127127
BackordersBackorders
0
100
200
300
400
500
600
0 1 2 3 4 5 6 7
Impulse Amplitude
Ba
ck
ord
ers
Retailer Wholesaler Distributor Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
128128
StockoutsStockouts
0
1
2
0 1 2 3 4 5 6 7
Impulse Amplitude
Sto
ck
ou
ts
Retailer Wholesaler Distributor Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
129129
Std. Dev. of DemandStd. Dev. of Demand
0
10
20
30
40
50
60
70
0 1 2 3 4 5 6 7
Impulse Amplitude
Std
. De
v. O
f D
em
an
d
Retailer Wholesaler Distributor Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
(s, S) Policy(s, S) Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
131131
Total InventoryTotal Inventory
0
500
1000
1500
2000
2500
0 1 2 3 4 5 6 7
Impulse Amplitude
To
tal I
nv
en
tory
Retailer Wholesaler Distributor Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
132132
Std. Dev. of InventoryStd. Dev. of Inventory
0
20
40
60
80
100
120
0 1 2 3 4 5 6 7
Impulse Amplitude
Std
. De
v. O
f In
ve
nto
ry
Retailer Wholesaler Distributor Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
133133
BackordersBackorders
0
500
1000
1500
2000
2500
0 1 2 3 4 5 6 7
Impulse Amplitude
Ba
ck
ord
ers
Retailer Wholesaler Distributor Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
134134
StockoutsStockouts
0
5
10
15
20
25
0 1 2 3 4 5 6 7
Impulse Amplitude
Sto
ck
ou
ts
Retailer Wholesaler Distributor Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
135135
Std. Dev. of DemandStd. Dev. of Demand
0
20
40
60
80
100
120
140
0 1 2 3 4 5 6 7
Impulse Amplitude
Std
. De
v. O
f D
em
an
d
Retailer Wholesaler Distributor Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
(s, Q) Policy(s, Q) Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
137137
Total InventoryTotal Inventory
0
200
400
600
800
1000
1200
1400
1600
1800
2000
0 1 2 3 4 5 6 7
Impulse Amplitude
To
tal I
nv
en
tory
Retailer Wholesaler Distributor Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
138138
Std. Dev. of InventoryStd. Dev. of Inventory
0
20
40
60
80
100
120
0 1 2 3 4 5 6 7
Impulse Amplitude
Std
. De
v. O
f In
ve
nto
ry
Retailer Wholesaler Distributor Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
139139
BackordersBackorders
0
500
1000
1500
2000
2500
0 1 2 3 4 5 6 7
Impulse Amplitude
Ba
ck
ord
ers
Retailer Wholesaler Distributor Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
140140
StockoutsStockouts
0
5
10
15
20
25
0 1 2 3 4 5 6 7
Impulse Amplitude
Sto
ck
ou
ts
Retailer Wholesaler Distributor Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
141141
Std. Dev. of DemandStd. Dev. of Demand
0
20
40
60
80
100
120
140
0 1 2 3 4 5 6 7
Impulse Amplitude
Std
. De
v. O
f D
em
an
d
Retailer Wholesaler Distributor Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
142142
Effect of Amplitude on the Effect of Amplitude on the Supply Chain as a WholeSupply Chain as a Whole
Type of Impulse Positive Impulse (0.9) Negative Impulse (-0.9)
Performance Metrics Used Total Inventory Std. Dev. of Inventory Backorders Stockouts Std. Dev. of Demands
Department of Mechanical EngineeringIndian Institute of Technology Delhi
143143
Negative Impulse Total InventoryNegative Impulse Total Inventory
0
500
1000
1500
2000
2500
Retailer Wholesaler Distributor Manufacturer
To
tal I
nv
en
tory
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
144144
Std. Dev. of InventoryStd. Dev. of Inventory
0
10
20
30
40
50
60
70
Retailer Wholesaler Distributor Manufacturer
Std
. De
v. O
f In
ve
nto
ry
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
145145
BackordersBackorders
0
500
1000
1500
2000
2500
Retailer Wholesaler Distributor Manufacturer
Ba
ck
ord
ers
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
146146
StockoutsStockouts
0
5
10
15
20
25
Retailer Wholesaler Distributor Manufacturer
Sto
ck
ou
ts
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
147147
Std. Dev. of DemandStd. Dev. of Demand
0
20
40
60
80
100
120
140
Retailer Wholesaler Distributor Manufacturer
Std
. De
v o
f D
em
an
d
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
148148
Positive Impulse Total InventoryPositive Impulse Total Inventory
0
20
40
60
80
100
120
Retailer Wholesaler Distributor Manufacturer
To
tal I
nv
en
tory
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
149149
Std. Dev. of InventoryStd. Dev. of Inventory
0
2
4
6
8
10
12
14
16
Retailer Wholesaler Distributor Manufacturer
Std
. De
v. O
f In
ve
nto
ry
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
150150
BackordersBackorders
0
20
40
60
80
100
120
Retailer Wholesaler Distributor Manufacturer
Ba
ck
ord
ers
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
151151
StockoutsStockouts
0
0.2
0.4
0.6
0.8
1
1.2
Retailer Wholesaler Distributor Manufacturer
Sto
ck
ou
ts
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
152152
Std. Dev. of DemandStd. Dev. of Demand
0
2
4
6
8
10
12
14
16
Retailer Wholesaler Distributor Manufacturer
Std
. De
v o
f D
em
an
d
Demand Flow Order Q s, S Policy s, Q Policy
Department of Mechanical EngineeringIndian Institute of Technology Delhi
153153
Effect of Demand History on Effect of Demand History on Supply Chain PerformanceSupply Chain Performance
Experimental Setup No Information Sharing
Effect on Individual Nodes Effect on Whole Supply Chain and Effect along
the Supply Chain Partial Information Sharing Full Information Sharing Comparison of Information Sharing Levels
Department of Mechanical EngineeringIndian Institute of Technology Delhi
No Information SharingNo Information Sharing
Department of Mechanical EngineeringIndian Institute of Technology Delhi
Effect on IndividualEffect on Individual Supply Chain Nodes Supply Chain Nodes
Retailer
Wholesaler
Distributor
Manufacturer
Department of Mechanical EngineeringIndian Institute of Technology Delhi
156156
Retailer’s Total InventoryRetailer’s Total Inventory
0 1 2 4 6 9 12 16 20 25 30 36 42 49
0
5000
10000
Past Demands
Tota
l Inv
ento
ry
Department of Mechanical EngineeringIndian Institute of Technology Delhi
157157
Retailer’s Maximum InventoryRetailer’s Maximum Inventory
0 1 2 4 6 9 12 16 20 25 30 36 42 49
0
100
200
300
Past Demands
Max
imum
Inv
ento
ry
Department of Mechanical EngineeringIndian Institute of Technology Delhi
158158
Retailer’s Std. Dev. of InventoryRetailer’s Std. Dev. of Inventory
0 1 2 4 6 9 12 16 20 25 30 36 42 49
0
10
20
30
40
50
60
70
80
Past Demands
Std
. D
ev.
of I
nven
tory
Department of Mechanical EngineeringIndian Institute of Technology Delhi
159159
Retailer’s BackordersRetailer’s Backorders
0 1 2 4 6 9 12 16 20 25 30 36 42 49
0
1000
2000
Past Demands
Bac
kord
ers
Department of Mechanical EngineeringIndian Institute of Technology Delhi
160160
Retailer’s StockoutsRetailer’s Stockouts
0 1 2 4 6 9 12 16 20 25 30 36 42 49
0
10
20
30
40
50
Past Demands
Sto
ckou
ts
Department of Mechanical EngineeringIndian Institute of Technology Delhi
161161
Wholesaler’s Total InventoryWholesaler’s Total Inventory
0 1 2 4 6 9 12 16 20 25 30 36 42 49
0
10000
20000
30000
40000
Past Demands
Tot
Inv
Department of Mechanical EngineeringIndian Institute of Technology Delhi
162162
Wholesaler’s Std. Dev. of InventoryWholesaler’s Std. Dev. of Inventory
0 1 2 4 6 9 12 16 20 25 30 36 42 49
0
100
200
300
400
Past Demands
Std
Dev
Inv
Department of Mechanical EngineeringIndian Institute of Technology Delhi
163163
Wholesaler’s BackordersWholesaler’s Backorders
0 1 2 4 6 9 12 16 20 25 30 36 42 49
0
100
200
300
400
500
600
700
800
900
Past Demands
Bac
kord
ers
Department of Mechanical EngineeringIndian Institute of Technology Delhi
164164
Wholesaler’s StockoutsWholesaler’s Stockouts
0 1 2 4 6 9 12 16 20 25 30 36 42 49
0
10
20
Past Demands
Sto
ckou
ts
Department of Mechanical EngineeringIndian Institute of Technology Delhi
165165
Wholesaler’s Std. Dev. of DemandWholesaler’s Std. Dev. of Demand
0 1 2 4 6 9 12 16 20 25 30 36 42 49
0
50
100
Past Demands
Std
Dev
Dem
Department of Mechanical EngineeringIndian Institute of Technology Delhi
166166
Distributor’s Total InventoryDistributor’s Total Inventory
0 1 2 4 6 9 12 16 20 25 30 36 42 49
0
100000
200000
Past Demands
Tot
Inv
Department of Mechanical EngineeringIndian Institute of Technology Delhi
167167
Distributor’s Std. Dev. of InventoryDistributor’s Std. Dev. of Inventory
0 1 2 4 6 9 12 16 20 25 30 36 42 49
0
1000
2000
Past Demands
Std
Dev
Inv
Department of Mechanical EngineeringIndian Institute of Technology Delhi
168168
Distributor’s BackordersDistributor’s Backorders
4942363025201612964210
1000
500
0
Past Demands
Bac
kord
ers
Department of Mechanical EngineeringIndian Institute of Technology Delhi
169169
Distributor’s StockoutsDistributor’s Stockouts
0 1 2 4 6 9 12 16 20 25 30 36 42 49
0
10
20
Past Demands
Sto
ckou
ts
Department of Mechanical EngineeringIndian Institute of Technology Delhi
170170
Distributor’s Std. Dev. of DemandDistributor’s Std. Dev. of Demand
0 1 2 4 6 9 12 16 20 25 30 36 42 49
0
100
200
Past Demands
Std
Dev
Dem
Department of Mechanical EngineeringIndian Institute of Technology Delhi
171171
Manufacturer’s Total InventoryManufacturer’s Total Inventory
0 1 2 4 6 9 12 16 20 25 30 36 42 49
0
500000
1000000
Past Demands
Tot
Inv
Department of Mechanical EngineeringIndian Institute of Technology Delhi
172172
Manufacturer’s Manufacturer’s Std. Dev. of InventoryStd. Dev. of Inventory
0 1 2 4 6 9 12 16 20 25 30 36 42 49
0
1000
2000
3000
4000
5000
Past Demands
Std
Dev
Inv
Department of Mechanical EngineeringIndian Institute of Technology Delhi
173173
Manufacturer’s BackordersManufacturer’s Backorders
0 1 2 4 6 9 12 16 20 25 30 36 42 49
0
1000
2000
Past Demands
Bac
kord
ers
Department of Mechanical EngineeringIndian Institute of Technology Delhi
174174
Manufacturer’s StockoutsManufacturer’s Stockouts
0 1 2 4 6 9 12 16 20 25 30 36 42 49
0
10
20
Past Demands
Sto
ckou
ts
Department of Mechanical EngineeringIndian Institute of Technology Delhi
175175
Manufacturer’s Manufacturer’s Std. Dev. of DemandStd. Dev. of Demand
0 1 2 4 6 9 12 16 20 25 30 36 42 49
0
100
200
300
400
500
600
Past Demands
Std
Dev
Dem
Department of Mechanical EngineeringIndian Institute of Technology Delhi
Effect on Supply Chain and Effect on Supply Chain and Effect Along the Supply ChainEffect Along the Supply Chain
Department of Mechanical EngineeringIndian Institute of Technology Delhi
177177
Total InventoryTotal Inventory
4
3
0
0
L leve01
000005
2
0000001
02 03 041
05
vnItoT
sdnameD tsaP
Department of Mechanical EngineeringIndian Institute of Technology Delhi
178178
Std. Dev. of InventoryStd. Dev. of Inventory
4
3
0
0
L leve
0001
01
0002
0003
2
0004
02
0005
03 04
vnIveDdtS
105sdnameD tsaP
Department of Mechanical EngineeringIndian Institute of Technology Delhi
179179
BackordersBackorders
4
3
0
0
L leve01
0001
2
0002
02 03 04
sredrokcaB
105sdnameD tsaP
Department of Mechanical EngineeringIndian Institute of Technology Delhi
180180
StockoutsStockouts
4
3
0
0
L leve
01
01
02
2
03
04
02
05
03
stuokcotS
041
05sdnameD tsaP
Department of Mechanical EngineeringIndian Institute of Technology Delhi
181181
Std. Dev. of DemandStd. Dev. of Demand
4
3
0
0
L leve
001
002
01
003
2
004
005
02
006
03 04
meDveDdtS
105sdnameD tsaP
Department of Mechanical EngineeringIndian Institute of Technology Delhi
182182
Organization Organization of Thesisof Thesis
Department of Mechanical EngineeringIndian Institute of Technology Delhi
183183
Organization of ThesisOrganization of Thesis
Department of Mechanical EngineeringIndian Institute of Technology Delhi
184184
Organization of ThesisOrganization of Thesis
Department of Mechanical EngineeringIndian Institute of Technology Delhi
185185
Organization of ThesisOrganization of Thesis
Department of Mechanical EngineeringIndian Institute of Technology Delhi
186186
Organization of ThesisOrganization of Thesis
Department of Mechanical EngineeringIndian Institute of Technology Delhi
187187
Significant Contributions of the Significant Contributions of the Research Work Research Work
Development of an object-oriented supply chain simulation environment
Role of IT based tools are developed and used to study IT facilitated information and decision flows in flexible supply chains is studied
Development of a framework that incorporates different IT facilitated control policies in SCs
Comparison for inventory policies under deterministic variability and information sharing
Analysis of Supply chain performance under different levels of demand information (IT focus)
Department of Mechanical EngineeringIndian Institute of Technology Delhi
188188
Significant Contributions of the Significant Contributions of the Research Work Research Work
Analysis of Supply chain performance under different of Service levels
Analysis of Supply chain performance under different levels of demand variance
Analysis of supply chain performance under different level of information sharing with Different levels of demand history Different service levels Different demand variances
Department of Mechanical EngineeringIndian Institute of Technology Delhi
189189
Limitations and Limitations and Scope for Future ResearchScope for Future Research
The modeling environment can be extended in more directions like Closed loop supply chains by adding return
process Manufacturing operations can be extended to
include different kinds of production facilities ….
Focus on Inventory management only…
Department of Mechanical EngineeringIndian Institute of Technology Delhi
190190
List of PublicationsList of Publications Published/Accepted for Publication
Postponement strategies for re-engineering of automotive manufacturing: knowledge-management implications, International Journal of Advanced Manufacturing Technology, Article in Press, doi 10.1007/s00170-006-0679-z.
Hybrid Tabu-Sample Sort Simulated Annealing (SSA) with Fuzzy Logic Controller: CIM System Context, Studies in Informatics and Control, June 2006, Volume 15, Number 2.
Flexible Supply Chains: A Context for Decision Knowledge Sharing and Decision Delays, Global Journal of Flexible Systems Management, Volume 7 Numbers 3 & 4, July -Dec 2006 (Accepted for Publication).
Impact of Supply Chain Collaboration on Customer Service Level and Working Capital, Global Journal of Flexible Systems Management (Accepted for Publication).
Department of Mechanical EngineeringIndian Institute of Technology Delhi
191191
List of PublicationsList of Publications Under Review
A multi-criteria customer allocation problem in supply chain environment: an artificial immune system with fuzzy logic controller based approach, International Journal of Computers Communication and Control.
Inventory performance of some supply chain inventory policies under impulse demands, International Journal of Production Research, Manuscript ID: TPRS-2007-IJPR-0111.
Communicated An Object Oriented Framework for Modeling Control
Policies in a Supply Chain, International Journal of Value Chain Management
Department of Mechanical EngineeringIndian Institute of Technology Delhi
192192
List of PublicationsList of PublicationsNational / International ConferencesNational / International Conferences
Web Based Virtual Supply Chain Modeling to Enhance Learning, The International Conference on e-Learning (ICEL 2006), University of Quebec in Montreal, Canada, June 22-23.
Supply Chain Modeling: The agent based Approach, 12th IFAC Symposium on Information Control Problems in Manufacturing (INCOM-2006), Saint-Etienne, France, May 17-19.
Object-Oriented Approach for Simulation of Supply Chain, International Congress on Logistics and SCM Systems (ICLS-2006), Kaohsiung, Taiwan, May 1-2.
Comparison of some Supply Chain Management Software Applications, National Conference on Advances in Mechanical Engineering (AIME-2006), January 20-21.
Department of Mechanical EngineeringIndian Institute of Technology Delhi
Response to Response to Examiner’s CommentsExaminer’s Comments
Department of Mechanical EngineeringIndian Institute of Technology Delhi
194194
Comments of Examiner 1Comments of Examiner 1
1. No Information Sharing: Is it best for individual wholesalers and retailers?
As we move higher in the supply chain, the demand variability increases because of the inventory policy used
It is not that no information sharing is good for individual wholesalers and retailers, information sharing is just less important for them.
2. Full Information Sharing: Is it best for the overall system? Whether full information sharing is best for the system or not is
dependent on the inventory policy used The thesis aims to demonstrate that after some particular level of
information sharing, the investment in IT may not be economically justified
Department of Mechanical EngineeringIndian Institute of Technology Delhi
195195
Comments of Examiner 1Comments of Examiner 1
3. If answers to (1) and (2) above is yes, then explain why optimization on IS level (information sharing) is necessary? Why would an intermediate value (of IS) would be optimal? Whose objective have you considered? Individual wholesalers/retailers or the whole system? Or a combination of the two?
It is important to find the level and type of information sharing
4. On page xxvii: IT should be information technology The required change has been made.
5. Uncertainty in supply chain is demand side and the lead time size. When you consider disturbances: you could have considered lead time disturbances.
We consider this as a future area of research
Department of Mechanical EngineeringIndian Institute of Technology Delhi
196196
Comments of Examiner 1Comments of Examiner 16. Advanced IT means: continuous review policies (for
inventory). What implications does it have for your thesis? In a continuous review policy, the inventory position is
continuously monitored Review period is one day; all the policies in our research are the
continuous review policies
7. For single node (such as wholesaler or retailer): given demand and lead time uncertainty: optimal policy for lot sizing can be devised. Then it could be used in your simulation.
Decentralized decision making is found to deteriorate the supply chain performance
The decisions of one node may indirectly affect the performance of other (interaction effects)
Department of Mechanical EngineeringIndian Institute of Technology Delhi
197197
Comments of Examiner 1Comments of Examiner 18. A schematic diagram of supply chain (number of plants),
distributor (numbers) and the wholesaler/retailers (numbers) considered in the thesis can be given.
A schematic diagram of the supply chain considered in this thesis is given on page 136. Description of the same is given in section 4.5
9. Main focus of thesis is determination of optimal levels of controllable factors such as … modifying the thesis title.
Motivation of this research is to bring the information technology (IT) as a performance improvement solution in the supply chain
Information sharing and IT are mutually complimentary The research highlights where and how much information needs to
be shared for the optimal performance
10. Factors beyond the control of decision makers (uncertainty) and factors under decision-makers’ control … readability of the thesis.
The required tables have been added in the Appendix A
Department of Mechanical EngineeringIndian Institute of Technology Delhi
198198
Comments of Examiner 2Comments of Examiner 21. The current developed framework is limited to only two
players, i.e. manufacturing and inventory … more than three players?
There are four players in the supply chain considered in this research: Retailer, Wholesaler, Distributor and Manufacturer
In addition to the inbuilt player roles like supplier, manufacturer, distributor, wholesaler and retailer, users can also define their own Player Roles.
2. Network manufacturing is a new arena for modern manufacturing environment. How could … contribution in this field?
For network manufacturing also, this framework can still handle the execution side
In network manufacturing, the manufacturing of the finished product takes place through a coordination of multiple autonomous players. Such a network will have most of the players as manufacturing type players.
This framework can be used where higher level modeling of the manufacturing system is sufficient
Department of Mechanical EngineeringIndian Institute of Technology Delhi
199199
Comments of Examiner 2Comments of Examiner 23. In this research, “overall supply chain cost” has been used as the major
criterion for the supply chain performance. In fact, there are many Key Performance Indicators (KPI) reported in the supply chain management research work, such as agilability, lead time, flexibility, expandability, trust, etc. How could you consider these issues into your research framework?
The research framework, in its present form, has only the KPIs which were required for this research work, i.e. those related to inventory management
Since the framework is based on object oriented methodology, multiple KPI libraries can be added to it as and when need arises
4. What are the major bottlenecks in the implementation of the developed framework in real-life industrial case?
The framework has been developed considering a very generic nature of the supply chain
Department of Mechanical EngineeringIndian Institute of Technology Delhi
200200
Comments of Examiner 2Comments of Examiner 2
5. What are the major limitations of the developed framework in this thesis?
The return operation of a supply chain is not available in the framework.
In the future, some other major supply chain operations may be added in the framework.
The effectiveness of the simulation environment can be immensely improved by incorporating some optimization algorithms for simpler supply chain decisions and some meta-heuristics for complex problems.
Another important direction for future work is to provide animated simulation similar to that available in other simulation languages.
Department of Mechanical EngineeringIndian Institute of Technology Delhi
201201
Department of Mechanical EngineeringIndian Institute of Technology Delhi
202202