טכניון מכון טכנולוגי לישראל
הטכניון מכון טכנולוגי לישראל - בית הספר ללימודי מוסמכים  
Ph.D Thesis
Ph.D StudentAvinoam Tzimerman
SubjectDistributed Information Rich Transshipments: Analytical and
Simulative Approaches
DepartmentDepartment of Industrial Engineering and Management
Supervisors Professor Herer Yale
Full Professor Shtub Avraham
Full Thesis textFull thesis text - English Version


Abstract

We develop new Supply Chain Management (SCM) methodologies and better ways to teach these methodologies. In particular, we investigate a decentralized supply chain model and suggest a new business model for which we find an analytical optimal solution. We use a designated computer simulation application, which we designed and developed, to demonstrate this optimal solution. We also use this application to investigate teaching methodologies using simulation tools in the SCM domain in order to improve teaching.

We investigate a multi-retailer single period stochastic lot sizing problem. The retailers are independent and experience stochastic demand for a single item. Moreover, the retailers act independently, doing what is in their own best interest, i.e., decentralized control. We add to this constellation the option of transshipments. We introduce transshipments by proposing a mechanism that involves the presence of a third party whom we call 3PLC, 3rd Party Logistics Coordinator. 3PLC incentivizes the retailers to take part in the mechanism by providing each retailer with payments for his holding and shortage costs, for which, in return, 3PLC reaps the benefits of transshipments. Using 3PLC, we implement transshipments and coordinate the supply chain. The mechanism resolves this challenge without sharing private information such as cost and demand data among the retailers. We also show how the mechanism can split supply chain profits among the players in any way desired. Most importantly, this mechanism both retains the independent nature of the entities and completely exploits the benefits of the centralized system.

Our research also resulted in the design and development of the Supply Chain Simulator (SCS), a computer simulation application in the supply chain domain. SCS demonstrates the 3PLC’s optimal solution and results indicate that the analytical model conformed to the simulation outcome.

Gamification features are integral to the SCS interface and engine. We used SCS to teach both basic and advanced supply chain concepts. This classroom experience taught us that simulation improves the way we teach and train. Moreover, we present design principles for the development of simulation tools for effective use of these tools.

The use of simulation in the context of education is commonly referred to as simulation based training (SBT). Using SCS, we investigate two approaches incorporating two types of intragroup interaction (cooperative and competitive) using SBT with teams?a pure and a mixed approach?within the SCM domain. We examine how a combination of these two interaction types work in succession. Our purpose is to improve teaching and establish better ways to educate students using SBT. The goal is to investigate which approach is the more effective when using SBT techniques for engineering education?pure (strictly cooperative/competitive) or mixed (a combination of both). The results, rendered as guidelines for how to use SBT for team training, indicate that when teaching using SBT, a mixed approach is better than a pure approach. Moreover, if a mixed approach is used, the order is significant. In particular, we found that it is preferable to start with competitive interaction and then move to cooperative interaction.