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University of Wollongong
IACT 422 CASE STUDIES IN IT
 
(Spring Session)
SUPPLY CHAIN SIMULATIONFOR 4
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PARTY LOGISTICS
 Version 1.0Last Updated:Tuesday, 30 May 2006Prepared By:Nurhazman Abdul Aziz 2666182Bachelor in Information & Communication Technology
 
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Table of Contents 
1. Executive Summary.............................................................................................................................................32. Introduction.....................................................................................................................33. Philosophy of Supply Chain Management.............................................................................................................................................44. The Existing of 4
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Party Logistic.............................................................................................................................................75. The Target Company: Toyota & Linfox...........................................................................................................................................106. Supply Chain Simulation Framework ...........................................................................................................................................116.1 Identification of Classes in a Supply Chain Network.........................................126.2 Establishment of Nodes & Its Inherit Specialised Nodes...................................136.3 The Establishment of Relationships between the Nodes....................................146.4 The Robustness of a Facility (Node)..................................................................156.6 The Facility and Inventory System.....................................................................186.7 Relationship of a Product....................................................................................216.8 Relationships of Order and Demand...................................................................227. Supply Chain Simulation Architecture...........................................................................................................................................237.1 Simulation Interface............................................................................................257.2 Simulation as a Decision Support System..........................................................277.3 Multi-Agent Programming in the Simulation.....................................................298. Tools & Technology...........................................................................................................................................309. The Challenges and Feasibility...........................................................................................................................................319.1 Financial Challenges...........................................................................................319.2 Organisation Challenges.....................................................................................3210. Recommendation...........................................................................................................................................3311. Conclusion..................................................................................................................3412. References...................................................................................................................35
 
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1. Executive Summary 
The purpose of this paper is to investigate a generic framework to build up a supply chainsimulation application, based on an object-orientated environment. In this paper, thediscussion will be based on the design an object-oriented framework, and developing itinto a simulation based decision support for a supply chain logistic as an overall view.This solution is to be implemented by a fourth party logistic into one of its clients to aidthe operation of supply chain logistic planning. This is due to the complexity of planningof supply chain logistic. Poor planning may result in a system instability that mayseriously influence the ability to satisfy its customers. Thus, accurate, precise decisionhas to be made to optimize the performance of the system. Moreover, it is a vital issuethat right information is transferred to the right entities that needs the right information.Apart from that, a brief explanation of supply chain management and fourth party logisticare explained in this paper, together with the challenges faced in implementing thissupply chain simulation system.
2. Introduction
The basic supply chain management (SCM) aims to produce and distribute products tocustomers in the right quantities, locations, and schedule, with minimized system-widecosts while fulfilling service level requirements. Nevertheless the complexities of supplychain make it hard to accomplish the objective. This includes the logistic planning. Themodelling, analysis and optimisation of a logistic supply chain has become increasinglyimportant as the advent of internet commerce forces changes within the industry.The main objective of this research paper is to analyse a framework that is designed for aprototype objective oriented supply chain simulation to be implemented into amanufacturing plant with the support service from a fourth party logistic. Furthermore, asthe framework will be identified and analysed with all the related entities and relationship,the framework will be placed into simulation architecture of the system to build up the
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