Discrete-Event Simulation of Production and Sales Processes in a Company
09.01.2014, 16:45
Kravchenko,
Volodymyr (2013). Discrete-Event Simulation of Production and Sales
Processes in a Company. International Journal of Economics, Commerce and
Management. – Vol. 1, Is.2.
Abstract A
company, facing growing backorders, repeated failures, complaints and
other problems in performance, losses profits and time. Therefore,
mangers need to put and solve complex strategic alignment issues
concerning how business processes can be improved as well as what
results would be achieved by such strategies. Present paper uses
customer order decoupling point and inventory control policy as primary
managerial tasks for the alignment of production and sales processes.
The solution of these tasks ensures production line balance, supports
reliable and efficient customer relationships, and, in particular,
orders fulfilment. To verify the solutions’ ability to shorten costs and
sales loss, computer-aided discrete-event simulation is chosen as
scenario analysis tool. In the paper, Arena simulation models represent
manufacturing system in make-to-stock manner according to customer order
decoupling point and implement periodic inventory management policies
with backordering and loss of sales, such as line balancing and basic
stock, checking threshold, and combination thereof. The models are
managerial tool for decision-making, providing verification of business
strategies by parametrical study of non-stationary customer demand.
Keywords:DISCRETE-EVENT SIMULATION, PRODUCTION, SALES, INVENTORY MANAGEMENT, PROBLEM SOLVING.
