SIM Budget ComparisonWe
plan to start selling home and garden products in the USA. The supply
chain with 70 customers on the territory of the United States is
considered. The supply chain deals with five products: lighting, large
home appliances, furniture, gardening equipment and small appliances.
The demand is of repetitive nature, certain volume of products is
ordered every 5 days:
- 16 customers order 16 furniture
- 18 customers order 4 gardening equipment
- 18 customers order 12 large home appliances
- 15 customers order 8 lightning
- 17 customers order 20 small appliances
used the GFA experiment to find the following areas for regional
distribution centers: West (Nevada), South (Texas) and East (border of
Virginia, West Virginia and the District of Colombia).
used the NO experiment to find the most suitable warehouse locations in
every area (DC Lynchburg, DC Reno, DC Austin), and choose the Port of
New Orleans for transshipment. The next step is a detailed network budgeting, which answers the following questions:
Comparison experiment allows to analyze the effect of differences in the initial conditions on the outcome.
- How will the changes in demand affect the company budget?
- What will happen if demand is either increased by 20% or defined by the triangular distribution?
the Simulation experiment