Simulation-based Optimization for Supply Chain Design

1
Simulation-based Optimization for Supply Chain
Design

• INRIA Team
• April 7, 2004 Torino-Italy

2
Keys issues in supply chain design

• Uncertainties and risks
• Demand fluctuation
• Supply disruption
• Transportation instability
• Interrelation between decisions at different
  levels
• Strategic decisions
• Operational decisions
• Multiobjective
• Costs vs. Customer service level

• Characteristics of the case studies
• Demand seasonality, unstable transportation
  lead-time
• Supplier selection, inventory control
• Cost, lead-time, demand fill-rate

3
A case study from textile industry(actual
situation)

• Company outsources its production to outside
  contractors and focuses only on product design,
  marketing and distribution issues,
• One part of the global supply chain of the
  company, which distributes a single type of
  product