55-703939 – Supply Chain Modelling and Simulation

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55-703939 – Supply Chain Modelling and My Guru Software Simulation

Assignment2(21/22):Modelling and Simulation of a Distribution Network using SupplyChainGuru (SCG)

Introduction

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.

Assignment

You have been asked to simulate both networks (existing and proposed) to evaluate their performances.

Data
Product

Cost = £100

Selling Price = £200

ExistingFacilities

Facility	Location
Warehouse	London
Distribution Centre DC1	Birmingham
Distribution Centre DC2	Leeds
Distribution Centre DC3	Glasgow

Demand

Distribution Centre	Customer locations served by the distribution centre	Weekly Demand
DC1 (Birmingham)	Birmingham	100*[Group No]
	Cardiff	750*[Group No]
DC2 (Leeds)	Leeds	1250*[Group No]
	Liverpool	500*[Group No]
	Manchester	1000*[Group No]
DC3 (Glasgow)	Glasgow	900*[Group No]
	Edinburgh	1500*[Group No]
	Dundee	400*[Group No]

All weekly demands are subjected to + 10% variation

TransportationTimes

All distribution centres take a day to deliver shipments to customer locations.

NewDC

New DC (instead of 3 existing DCs) is to be in Sheffield. It will serve all current customer locations in the country.

Model Building & Execution

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

Report

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.

Group Assignment

This is a group assignment.

Assessment Criteria

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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55-703939 – Supply Chain Modelling and Simulation

55-703939 – Supply Chain Modelling and My Guru Software Simulation

Submission by: 15:00. Thursday, 28 April 2022

Please note along with our service, we will provide you with the following deliverables:

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