Discrete event dynamic modelling for supply chain management with risk control.

MELE, FERNANDO D.; BAGAJEWICZ, MIGUEL J.; ESPUÑA, ANTONIO; PUIGJANER, LUIS

Barcelona, España

Congreso; 9º Congreso Mediterráneo de Ingeniería Química; 2002

Sociedad Española de Química Industrial e Ingeniería Química

This work proposes a dynamic approach for Supply Chain Management (SCM) based on the development of a discrete event-driven system model of a Supply Chain (SC) contemplating several companies. The interaction between these companies may be very complex, making it necessary to explore the scenarios through simulation techniques. The proposed model, which is an extension of the one by Perea et al. (2000) includes each entity belonging to the SC as independent and well-defined blocks, each of them being represented by a collection of states and transitions. The functions needed for SC simulation are expressed modularly and they are interconnected to generate a whole SC model. The system considers the SC as a decentralised system where there is no global coordinator and every entity in it takes decisions locally. Several aspects such as inventory control policies, choosing between suppliers and demand uncertainty are included in the model in order to make a better representation of the reality. The system performance is evaluated by means of certain indicators such as inventory cost and customer satisfaction level but also adding the financial risk and its management. The findings of Barbaro and Bagajewicz (2002) are used to construct local controllers of risk. The way in which the model works is illustrated with some examples.