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SIM Global Network Examination

We consider a supply chain comprising:

  • 2 Factories in Xiamen and Shenzhen (China) producing home and garden products
  • Supplier in Shantou (China) providing components for production of home and garden appliances
  • Customers in Africa, Asia, Australia, Europe, North America, South America, and the European and the Asian parts of Russia

Product shipping to a customer can be done directly from the factory, ports, distribution centers, or from ports through DCs.

The supply chain deals with 5 products:

  • Lighting
  • Large home appliances
  • Furniture
  • Gardening equipment
  • Small appliances

We used the NO experiment to find the most suitable warehouse locations in every area:

  • North America (Dallas)
  • South America (Asuncion)
  • Europe (Brussels)
  • Russia (Moscow)
  • India (Chandrapur)
  • China (Nanchang)

We also chose Port locations for transshipment:

  • Port Houston (North America)
  • Port Guayaquil (South America)
  • Port Durban (Africa)
  • Port Sydney (Australia)
Import tariffs
Country/Product Lighting Large home
appliances
Furniture Gardening
equipment
Small
appliances
DC Moscow 9.50% 9.50% 0.00% 6.50% 9.50%
DC Chandrapur 20.00% 8.00% 10.00% 10.00% 8.00%
Port Sydney 5.00% 5.00% 5.00% 5.00% 5.00%
Port Huston 2.60% 0.00% 5.90% 5.30% 0.00%
Port Dubai 10.00% 25.00% 20.00% 20.00% 25.00%
Port Guayaquil 16.70% 20.00% 30.00% 20.00% 20.00%

The next step is a detailed network analysis.

Goal

As your manufacturing plans have to meet the requirements of your supply chain, including demand, shipping terms, downstream inventory policies, etc., you need to calculate the ROI of your network change decisions.

Result

Simulation experiment is used to model the actual products delivery on the GIS map with detailed statistics, which show the data collected on different types of facilities involved in the supply chain scenario during the experiment:

  • Profit and lost statement
  • Total factory shipped
  • Peak capacity
  • Service Level
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