Planning Complex Supply Networks Facing High Variability

Abstract

Interwoven production lines may be complex, with variable yield and production times, various sub-components competing for processing capacities, and fixed batch sizes. Furthermore, inventory costs need to be minimized and fluctuating customer demands need to be satisfied 98 % of the time. Such complex production lines need to be optimized using a combination of techniques. We describe an approach using a simplified mathematical model that allows for sensitivity analyses, followed by a discrete event simulation to adequately represent the complex business environment.