A hybrid simulation approach to planning in a VMI supply chain. (6th March 2007)

• Record Type: Journal Article
• Authors: Venkateswaran, Jayendran; Son, Young-Jun; Jones, Albert T.; Min, Hyeung-Sik J.
• Is Part Of: International journal of simulation and process modelling. Volume 2:Number 3/4(2006)
• Page Start: 133
• Page End: 149
• Publication Date: 2007-03-06
• Subjects: hybrid distributed simulation -- system dynamics -- discrete-event simulation -- supply chain management -- SCM -- VMI supply chains -- vendor managed inventory -- hierarchical production planning -- HPP; Management -- Computer simulation -- Periodicals; Mathematical models -- Periodicals; Operations research -- Periodicals; Simulation methods -- Periodicals; 003.05
• Languages: English
• ISSNs: 1740-2123

Abstract

In this paper, we propose an innovative approach of integrating the vendor managed inventory (VMI) strategy with a hierarchical approach to production planning (HPP) decisions within a supply chain environment. The proposed architecture is divided into three stages: plan optimisation (Stages I), schedule optimisation (Stage II) and decision evaluation (Stage III). To implement this architecture, we use system dynamics simulations, discrete-event simulations and the High Level Architecture (HLA) as a distributed infrastructure. We describe our approach for the analysis of supply chains in detail and discuss results from experiments that demonstrate the benefits of the proposed architecture.