55-703939 – Supply Chain Modelling and My Guru Software Simulation
Assignment2(21/22):Modelling and Simulation of a Distribution Network using SupplyChainGuru (SCG)
A company has a long-running distribution network with one (1) warehouse and three (3) distributions centres in the UK. Having reviewed its current operations, the company is intending to close all existing distribution centres and set up one large distribution centre.
You have been asked to simulate both networks (existing and proposed) to evaluate their performances.
Cost = £100
Selling Price = £200
|Distribution Centre DC1||Birmingham|
|Distribution Centre DC2||Leeds|
|Distribution Centre DC3||Glasgow|
|Distribution Centre||Customer locations served by the distribution centre||Weekly Demand|
|DC1 (Birmingham)||Birmingham||100*[Group No]|
|DC2 (Leeds)||Leeds||1250*[Group No]|
|DC3 (Glasgow)||Glasgow||900*[Group No]|
All weekly demands are subjected to + 10% variation
All distribution centres take a day to deliver shipments to customer locations.
New DC (instead of 3 existing DCs) is to be in Sheffield. It will serve all current customer locations in the country.
Stage 1 – Modelling existing network
You are required to estimate Reorder Level (R) and Reorder Quantity (Q) for each storage location in the network. These estimates need to be used in the SCG model.
Stage 2 – New Network
Use the same demand data and estimate R and Q for each storage location and use them in thesimulation model.
Simulation run length – 3 months
No of replications per experiment = 4
Produce a report to present the following information.
- Introduction to the simulation study, outlining the purpose of the simulation (1/2 page)
- Tables containing R and Q estimates used in the model and how they were derived.
- Your choice of performance indicators for comparison of two networks. You need to justify your choice of performance indicators.
- For the above project, the company has used a consulting firm. But for future projects, it is considering building simulation capabilities internally (software and skills). How do you advise the company on avoiding pitfalls in simulation projects? (3/4 – 1 page maximum)
A copy of the model should be submitted. Further instructions on how to submit the model will be issued by the tutor.
This is a group assignment.
|Clear statement on the purpose of simulation||5%|
|Accuracy of R & Q parameter estimation||10%|
|Accuracy of SupplyChainGuru Model||10%|
|Analysis and comparison of the performance of two networks||50%|
|Robust advice on avoiding simulation project pitfalls||15%|
|Presentation of results||10%|
Please note the attached Level 7 Assessment Rubric.
Submission by: 15:00. Thursday, 28 April 2022
Prof Terrence Perera March 2022
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