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Viewing report
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CENTRALIZED AND DECENTRALIZED DISTRIBUTION STORAGE
SYSTEMS. Edition No. 1
VDM Publishing House, Dec 2008, Pages: 168
The design of a Supply Chain network has a great
impact on a company’s performance. Simulation
modeling and optimization techniques were selected to
analyze and solve supply chain and distribution
storage problems.
The techniques were applied to a decision making
process of reconfiguring an existing distribution
storage system, and modifying it from centralized to
a decentralized one. This research presented a
methodology for identifying data needs, building an
analytical database, creating simulation models with
Arena software, optimizing the models with OptQuest
software, and performing sensitivity analysis.
As a result of applying this methodology, it was
found that the centralized distribution storage
system allows the company to operate at a lower cost
(savings from 11.03% to 19.09%) while providing
customers with better service. The sensitivity
analysis proved that savings are affected by
transportation cost, demand volume, and the time at
which products need to be available for delivery.
Simulation/optimization approach was found to be
effective and allowed for the creation of a
methodology that can be repeated for similar types of
problems.
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