Strategic Assessment: Logistics

An example of SDI's work in logistics is:

Strategic Topics

Strategic Assessment - Logistics

Logistics: Tactical analysis of system loading

short term simulation of system behavior to support resource scheduling

Summary

Simulation models can be used to predict system behavior in the short term. For example, the VinLogic model (see case studies) is used by INL to predict on a weekly basis the number of vehicles arriving at rail unloading sites during the subsequent week.

Unlike strategic models, tactical models must be initialized with a realistic picture of the current state of the system being modeled.

Model Initialization

Typically, manufacturing or supply chain simulations require a warm up period to 'load the system' with materials in process. For example, a strategic supply chain model might generate results for a period of a year from 1/1/08 to 1/1/09, but the model run actually starts 10/1/07. This gives the model 3 months to overcome perturbations that result from the initially empty pipelines.

Tactical models do not have this luxury. It is necessary to capture data on the current state of the real world system and input that data to define the initial state of the model for the simulation run. In the case of the VinLogic model, INL maintains VinVison, a web-deployed application that tracks the location of individual vehicle shipments, inventories, trucks and rail cars throughout the distribution network. The VinLogic simulation model uses live data from VinVison to initialize each model run.

Initializing a Distribution Supply Chain Simulation with Live Data; Malay Dalal, Union Pacific Railroad; Henry Bell, Mike Denzien, Simulation Dynamics; Michael Keller, Insight Network Logistics. Winder Simulation Conference, 2003

Case Studies