SUNConferences, 29th Annual Conference of SAIIE

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A CASE STUDY - MANAGING OPERATIONAL AND SUPPLY CHAIN EFFICIENCY: STOCHASTIC MODELLING OF A NEW PRODUCTION FACILITY
Jacobus Ignatius de Wet, Jan-Harm Pretorius

Last modified: 2018-10-09

Abstract


An industrial company has embarked on an expansion project to create more capacity to meet the growing demand for one of its high-end product ranges. The final step in the production process constitutes of solidification, packaging, local storage and distribution. A stochastic simulation model in Arena Simulation Software was developed to represent the packaging activities, transportation between intermediate storage facilities and the product outbound supply chain. The aim of this study is to analyse the impact of the additional production volumes on the high-end product range packaging facility and the outbound supply chain capabilities and constraints. The study determined the required fleet and staging capacity at the production facility. A compelling business case is justified to expand the staging capacity as it holds significant opportunity cost.


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