02/08/2018
1
HYBRID OPTIMIZATION/SIMULATION APPROACHFOR FLEXIBLE SUPPLY CHAIN MANAGEMENT
Dissertação realizada no âmbito do Mestrado Integrado em Engenharia Electrotécnica e de Computadores
Supervisors: Jorge Pinho de Sousa / Samuel de Oliveira Moniz
Narciso Manuel Sobral Couto Caldas
LIST OF CONTENTS
• 1 - Introduction
• 2 - Case Study
• 3 - Methodology
• 4 - Models
• 5 - Implementation
• 6 - Results
• 7 - Conclusion
02/08/2018
2
1 - INTRODUCTION
CONTEXT
[1] S. H. Khajavi, J. Partanen, and J. Holmström, "Additive manufacturing in the spare parts supply chain," Computers in Industry, Article vol. 65, no. 1, pp. 50-63, 2014.[2] D. J. Garcia and F. You, "Supply chain design and optimization: Challenges and opportunities," Computers and Chemical Engineering, Article vol. 81, pp. 153-170, 2015.[3] S. Moniz, "Operations management, Lecture TP9 – Managing inventories " November, 2016.
•Market competitivity [1]
• Importance of supply chain design [2]
•Good stock management [3]
•Use of additive manufacturing [1]
4
1. INTRODUCTION
02/08/2018
3
MOTIVATION
• Evaluate new supply chain configurations
•Develop a decision support tool for supply chain managment
5
1. INTRODUCTION
OBJECTIVES
•Develop of a optimization/simulation model•Consider the use of 3D printers• Evaluate new supply chain configurations
6
1. INTRODUCTION
02/08/2018
4
2 - CASE STUDY
CASE STUDY
Inserted in the European project FASTEN
A company intends to use 3D printers and evaluate the impact of it’s use
External suppliers Remote stations Final clients
2
Supply chain
8
02/08/2018
5
CASE STUDY2
9
Don’t belong to the company
Supply parts
Inserted in the European project FASTEN
A company intends to use 3D printers and evaluate the impact of it’s use
External suppliers Remote stations Final clients
Supply chain
CASE STUDY
Inserido no projeto europeu FASTEN
Empresa pretende utilizar impressão 3D e avaliar o impacto do seu uso
External suppliers Remotes stations Final clients
2
Supply chain
10
Where 3D printers will be installed
Distribution Centers
02/08/2018
6
CASE STUDY
Inserido no projeto europeu FASTEN
Empresa pretende utilizar impressão 3D e avaliar o impacto do seu uso
External suppliers Remotes stations Final clients
2
Supply chain
11
Where elevators are installed
CURRENT SUPPLY CHAIN
12
2. CASE STUDY
02/08/2018
7
SUPPLY CHAIN TO BE IMPLEMENTED
13
2. CASE STUDY
3 - METHODOLOGY
02/08/2018
8
METHODOLOGY3
Conceptualization Modelation Validation and verification
Run optimization Run simulation Results analysis
15
Implementation
METHODOLOGY3
Conceptualization Modelation Validation andverification
Run optimization Run simulation Results analysis
16
Define simulation model requirements and integration with optimization
Implementation
02/08/2018
9
METHODOLOGY3
Conceptualization Modelation Validation andverification
Results analysis
17
Build the simulationmodel
Run optimization Run simulation Implementation
METHODOLOGY3
Conceptualization Modelation Validation andverification
Results analysis
18
Test the simulation model na the integration with the optimization
Run optimization Run simulation Implementation
02/08/2018
10
METHODOLOGY3
Conceptualization Modelation Validation andverification
Results analysis
19
Run optimization Run simulation
Running the optimization model for the case study
Implementation
METHODOLOGY3
Conceptualization Modelation Validation andverification
Results analysis
20
Run optimization Run simulation
Evaluate the performance of the supply chain
Implementation
02/08/2018
11
METHODOLOGY3
Conceptualization Modelation Validation andverification
Results analysis
21
Run optimization Run simulation
Analysis and comparison of the results of both models
Implementation
METHODOLOGY3
Conceptualization Modelation Validation andverification
ImplementationResults analysis
22
Run optimization Run simulation
3D printers, stock levels, capacities
02/08/2018
12
4 - MODELS
OPTIMIZATION
Number of 3D printers
Parts produced
Stock levels
Supplying parameters
Suppliers
24
4. MODELS
Decision variables
02/08/2018
13
OPTIMIZATION
25
Constrains
• Number of 3D printers >= 0
• A remote station can only provide parts that produce
• A remote station can only produce for its own consumption and/or supply
• A station can’t produce above its capacity
• For a part type, a station can only be supplied by a supplier or remote station
Costs
Objective function
4. MODELS
SIMULATION
Simulation
Simulation
Monitorization
Dashboards and tables
Number of 3D printes
Parts produced
Stock levels
Supplying parameters
Suppliers
Optimization
26
4. MODELS
02/08/2018
14
SIMULATION MODEL
Configuration 1
• 3 Part types (A, B & C)
• 3 Remote stations (A, B & C)
• 1 External supplier (1)
27
4. MODELS
SIMULATION MODEL
Configuration 2
• 5 Part types (A, B, C, D & E)
• 3 Remote stations (A, B & C)
• 3 External supplier (1, 2 & 3)
28
4. MODELS
02/08/2018
15
COSTS DASHBOARD
29
4. MODELS
COSTS DASHBOARD
30
4. MODELS
02/08/2018
16
INVENTORY/PRODUCTION DASHBOARD
31
4. MODELS
5 - IMPLEMENTATIONOF THE METHODOLOGY
02/08/2018
17
IMPLEMENTATION DA METHODOLOGY
Inputs Optimizationmodel
Supply chain Results
5
Simulation model
33
IMPLEMENTATION DA METHODOLOGY
Inputs Optimizationmodel
Supply chain Results
5
Simulation model
34
Inputs (costs, demand, times, etc.) given by Excel
02/08/2018
18
IMPLEMENTATION DA METHODOLOGY
Inputs Optimizationmodel
Supply chain Results
5
Simulation model
35
Running the optimization models with the inputs
IMPLEMENTATION DA METHODOLOGY
Inputs Optimizationmodel
Supply chain Results
5
Simulation model
36
Suppliers, number of 3D printers, stock levels, capacities, etc. saved on Excel
02/08/2018
19
IMPLEMENTATION DA METHODOLOGY
Inputs Optimizationmodel
Supply chain Results
5
Simulation model
37
Simulation model executed withthe optimization results
IMPLEMENTATION DA METHODOLOGY
Inputs Optimizationmodel
Supply chain Results
5
Simulation model
38
Results visualization
02/08/2018
20
6 - RESULTS
TEST SCENARIOS
40
6. RESULTS
Scenario 3D printers type Configuration Localization
02/08/2018
21
TEST SCENARIOS
41
6. RESULTS
Scenario 3D printers type Configuration Localization
1 Actual 1 A
TEST SCENARIOS6
42
RESULTS
Scenario 3D printers type Configuration Localization
1 Actual 1 A
2 Advanced* 1 A e C
*2x faster and half of the cost
02/08/2018
22
TEST SCENARIOS
43
6. RESULTS
Scenario 3D printers type Configuration Localization
1 Atual 1 A
2 Advanced* 1 A e C
3 Actual 2 A
*2x faster and half of the cost
TEST SCENARIOS
Scenario 3D printers type Configuration Localization
1 Atual 1 A
2 Advanced* 1 A e C
3 Actual 2 A
4 Advanced* 2 A
6
44
6. RESULTS
*2x faster and half of the cost
02/08/2018
23
RESULTS DO CASE STUDY
45
6. RESULTS
Lead time
Scenario
1 2 3 4
5,1h 4,7h 4,8h 4,8h
RESULTS DO CASE STUDY
Service level
46
6. RESULTS
Scenario
1 2 3 4
96% 97% 98% 98%
02/08/2018
24
RESULTS DO CASE STUDY
Scenario 1: Inventory of part B
in remote B
Inventory status
47
6. RESULTS
RESULTS DO CASE STUDY
Total cost
Scenario Optimization Simulation
1 € 225 430 € 237 514
2 € 192 242 € 200 849
3 € 346 291 € 348 844
4 € 288 111 € 297 303
48
6. RESULTS
02/08/2018
25
RESULTS DO CASE STUDY
Scenario 1 costs
Costs Optimization Simulation
Fixed € 66 000 € 66 000
Orders € 159 135 € 162 594
Inventory € 295 € 440
Stockout € 0 € 8 480
Total € 225 430 € 237 514
49
6. RESULTS
7 - CONCLUSION
02/08/2018
26
CONCLUSIONS
51
• The tool developed (which integrates optimization and simulation) helps design supply chains
• The obtained results allowed to verify that well located 3D printing improves the lead time and the service level
7. CONCLUSION
FUTURE DEVELOPMENTS
52
• More detailed transports simulation
• Consideration of maintenance teams
7. CONCLUSION
02/08/2018
27
THANK YOU
Narciso Manuel Sobral Couto Caldas