Tutorial 4- Exercise 02

Supply Chain Modelling and Simulation

55-703939

Hands-On Discrete Event Simulation

The simulation application you’re about to experiment with is used in the academic
world, but it highlights a great example of discrete event simulation that you can
control by manipulating the parameters and constraints.

Instructions
The simulation application you’re about to experiment with is used in the academic
world, but it highlights a great example of discrete event simulation that you can
control by manipulating the parameters and constraints. The simulation explores how
inventory levels, demand, shipment capacity, and lead and delivery time affect
service levels and sales.

Step 1 – Open the .jar file

1. Download Student.jar from the BB Site.
2. Open the file on your computer.
3. From the menu, click to open the Inventory ROP simulation.
 Tutorial 4- Exercise 02
Supply Chain Modelling and Simulation
55-703939

There are a number of controls you can manipulate in this simulation, including:
 Arrival Rate: the rate at which customers arrive
 Arrival CV: the variability of the arrival rate
 Lead Time: the time between the placement of an order and a truck delivery
 Lead Time CV: the variability of the lead time
 Truck Load: the capacity of the truck
 ROP: the level of inventory at which to reorder
 Speed: speed of the animation
 Truck types: options for trucks

As you manipulate the controls, the following results of the simulation will be
affected:

 On hand: number of boxes on hand

 Tutorial 4- Exercise 02
Supply Chain Modelling and Simulation
55-703939

 On hand & On Order: number of boxes on hand plus number of boxed that
have been ordered
 Predicted On Hand: number of boxes on hand plus number of boxes on
order minus mean demand during lead time
 Lost Sales: number of customers that did not get a box
 Service Level: percent of periods with no stock outs
 Fill Rate: percent of demand met from stock

Step 2 – Run the simulation

1. Click the Play button to start the simulation
2. As the simulation runs, adjust the parameters and note the impact to the results
and animation.
 Tutorial 4- Exercise 02
Supply Chain Modelling and Simulation
55-703939

What did you find? How were the results affected? Did you notice the change
in the animation, itself?