55-703939 – Supply Chain Modelling and Simulation

DepartmentofEngineering&Mathematics

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

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

  1. 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.

  1. Assignment

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

  1. Data
  2. Product

Cost = £100

Selling Price = £200

  1. ExistingFacilities
FacilityLocation
WarehouseLondon
Distribution Centre DC1Birmingham
Distribution Centre DC2Leeds
Distribution Centre DC3Glasgow
  1. Demand
Distribution CentreCustomer locations served by the distribution centreWeekly Demand
DC1 (Birmingham)Birmingham100*[Group No]

Cardiff750*[Group No]
DC2 (Leeds)Leeds1250*[Group No]

Liverpool500*[Group No]

Manchester1000*[Group No]
DC3 (Glasgow)Glasgow900*[Group No]

Edinburgh1500*[Group No]

Dundee400*[Group No]

All weekly demands are subjected to + 10% variation

  1. TransportationTimes

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

  1. NewDC

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

  1. 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

  1. Report

Produce a report to present the following information.

  1. Introduction to the simulation study, outlining the purpose of the simulation (1/2 page)
  2. Tables containing R and Q estimates used in the model and how they were derived.
  3. Your choice of performance indicators for comparison of two networks. You need to justify your choice of performance indicators.
  4. 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.

  1. Group Assignment

This is a group assignment.

  1. Assessment Criteria
Clear statement on the purpose of simulation5%
Accuracy of R & Q parameter estimation10%
Accuracy of SupplyChainGuru Model10%
Analysis and comparison of the performance of two networks50%
Robust advice on avoiding simulation project pitfalls15%
Presentation of results10%

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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