|M.Sc Student||Dery Loren|
|Subject||Supply Chain Modeling Using the Supply Chain Simulator|
|Department||Department of Industrial Engineering and Management||Supervisor||Professor Yale Herer|
|Full Thesis text|
Simulators have been shown to be an excellent training tool in academic environments as well as in industry. However, to date few supply chain management simulators have been developed. This is one reason why the Technion decided to develop its own supply chain simulator, aptly called the Supply Chain Simulator (SCS). Here we demonstrate how to use the SCS as an aid in teaching. More specifically, we show how the SCS can be used to teach students to solve to the following question: What is the correct way to supply multiple retailers from a single manufacturer? The lesson is accomplished through a series of four exercises. We first look at the ordering method for a specific facility (retailer or warehouse); then we compare two alternative solutions. In the first solution, the manufacturer supplies each retailer directly. In the second one, the manufacturer supplies a forward warehouse, which supplies the multiple retailers. We also validate a heuristic algorithm to find a good approximation of the quantity to order for the warehouse. Through this exercise we explain the use of a forward warehouse as a source of inventory pooling. Using an Inventory Position ordering method with a base stock ordering policy for retailers and an Echelon Inventory Position ordering method with a base stock ordering policy for warehouses, we see that the pooling alternative is more efficient/cheaper than the direct one.