Supply Chain Modelling and Simulation Analyses – Management Assignment Help

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Supply Chain Modelling and Simulation

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Assignment: 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.

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


All weekly demands are subjected to + 10% variation

(d) Transportation Times
All distribution centres take a day to deliver shipments to customer locations.

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

4. 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

5. Report
Produce a report to present the following information.
(a) Introduction to the simulation study, outlining the purpose of the simulation (1/2 page)
(b) Tables containing R and Q estimates used in the model and how they were derived.
(c) Your choice of performance indicators for comparison of two networks. You need to justify your choice of performance indicators.
(d) 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.

6. Group Assignment
This is a group assignment.

7. Assessment Criteria
Clear statement on the purpose of simulation 
Accuracy of R & Q parameter estimation 
Accuracy of SupplyChainGuru Model 
Analysis and comparison of the performance of two networks
Robust advice on avoiding simulation project pitfalls 
Presentation of results

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