OCTOBER 19-20, 2012 - YMCA University of Science & Technology

Proceedings of the National Conference on
Trends and Advances in Mechanical Engineering,
YMCA University of Science & Technology, Faridabad, Haryana, Oct 19-20, 2012
customer demand
arrives to retailer
0
assign customer
demand to retailer
retailer
0
assign retailer
demand to
distributor
distributor
0
assign distributor
demand to output
buffer
output buffer
0
assign output
buffer demand to
input buffer
input buffer
assign input buffer
demand to supplier
supplier
dispose input buffer
demand
0 0 0
Figure 3 Simulation model with decentralized information (main model)
assign cust omer
demand t o
dist r ibut or
cust omer demand
ar r ives t o r et ailer
decide cust omer
demand t o
r et ailer _out put
buf f er _pr oduct ion
plant _input
buf f er _supplier
assign cust omer
demand t o
r et ailer
r et ailer
assign r et ailer
demand t o
dist r ibut or
0 0 0
10
30
Els e
10
40
dist r ibut or
assign dist r ibut or
demand t o out put
buf f er
assign cust omer
demand t o out put
buf f er
out put buf f er
assign out put
buf f er demand t o
input buf f er
input buf f er
0 0
assign input
buf f er demand t o
supplier
supplier
0
dispose input
buf f er demand
0
assign cust omer
demand t o input
budf f er
assign cust omer
demand t o
supplier
Figure 4 Simulation Model with centralized information (main model)
4.3 Simulation Model Translation
Models have been developed by using ARENA Simulation Software to study the functioning of the company
and new model has been devised to make the system performance efficient. We have built models in such a
manner that what we study about the system should be same what we have developed through models.
Validation confirms about the realistic characteristics of the system. We have verified the model by the analysis
of the predictions. We have gone through the following strategy
1. Inspection of logic of simulation program
2. Performing of simulation test runs with which we can inspect the correctness of the program logic
3. Performing simple consistency checks
Bullwhip Effect in the supply chain is quantified by using equation 1.
………………….(1)
M=Variance (O t
)/Variance (D t
)
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