Using Discrete-Event Simulation to Create Flexibility in APAC Supply Chain Management

While discrete-event simulations have been used in a number of situations to model projects and events, this paper describes how the methodology may be used in a supply chain management context to assist in decisions where time and flexibility is essential. The model was developed to assist a multi-billion dollar company in understanding the impact of material flow from the US to the Asia-Pacific region (APAC) and to allow flexibility in the supply chain. More specifically, the DSS quantified the impact of shipping directly from US sources of supply to APAC customers versus shipping through consolidation (existing and proposed) locations using cycle time, throughput, work-in-process (WIP) and shipped containers as performance measures. The DSS is organizationally structured through a partnership between academia and industry where the academician maintains the model and industry maintains and supplies the data. This unique partnership provides industry with stable, long–term modeling expertise and increased productivity. Academia benefits from the opportunity by having access to practical global supply chain management issues.