Simulation Modeling of Domestic and International Intermodal Supply Paths
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2014-07-04
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Abstract:Supply of material to a manufacturing facility obviously has a major impact on enterprise performance, whether measured in terms of cost, timeliness, quality, etc. Most material that is input to a manufacturing process is transported to the manufacturing facility via multiple modes of transportation, i.e., it involves intermodal transportation. Since the material must be acquired from outside of the manufacturing site, sourcing decisions have significant impact on overall enterprise performance. Critical elements of those sourcing decisions include specifying from where to acquire the material, in what quantity, etc. It may also involve deciding the modes that should be used to transport the material from the source to the manufacturer. Even if specifying the mode is not part of the decision process, it is a significant driver in terms of cost, reliability, timeliness, etc. These issues pertain to domestic supply, but more importantly to international supply. The sourcing decision is complex since it involves a large number of factors and considerations, as well as interdependencies between the factors, and considerable variability and uncertainty. This is especially true when considering international sourcing options, but is important in assessing alternative domestic intermodal paths as well. This project provides the capability, through a software toolset, to deal with these issues. Simulation modeling and analysis is commonly applied to complex problems similar to those in the sourcing decision. Simulation provides the means to perform sophisticated what-if analyses on complex problems, such as assessing alternative intermodal supply paths. The toolset provides a means to quickly develop simulation models of both domestic and international supply chains. The project also provides a case study that illustrates how the toolset can be applied in a real setting.
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