I.

ProjectOverview[AT]
Theprojectbasicallydealswiththeapplicationofsimulationtointegratedlogisticsin
todaysworldofgrowingcustomerawarenessandhowitincorporatesthevarious
componentssuchasmanufacturing,transportation,anddistribution.Alsotheroleof
informationsystemswithsimulationisdiscussed,soastobringaboutcompleteness
totheproject.

TheSimulationandModelingTeamtouchesuponthehistoricalperspectivesof
simulation,itsgrowthfromamilitaryandacademictooltoitscurrentuseinindustrial
activitieswhereapplicationisprettydiverseandextensive.Theteamthenlooksatthe
definitionoflogistics,howthisareahelpstomaintainabalancebetweentheminute
detailsandthemainelementsinvolvedinaproject,andtheeffectofsomecurrent
issueslikeglobalization,thechangingnatureoftheworkforce,andthechallengesof
enhancingcustomersatisfaction,etc.ontheapplicationoflogistics.

Currentandupcomingstrategicissuesandopportunitiesinthefieldofsimulationand
supplychainmanagementareconsidered,aswellashowbusinessesarelooking
forwardtotheapplicationofsimulationtoolstosupplychainmanagement.Soasto
emphasizethispointofview,theprocessofmanufacturingandtransportation,and
howsimulationcanbeappliedtoeachofthecomponentsofthesupplychain
managementhasbeendefinedandexplained.Fromanillustrativepointofview,
modelsformanufacturingandtransportationofautomobilesandcomputershavealso
beendeveloped,theresultsofwhichhelptoanalyzehowtheprocessesshouldbelaid
out,whenandhowmuchmaterialshouldcomein,andhowthetransportationpart
couldbecoordinatedwithmanufacturingsothatthereisminimuminventoryinthe
system.

Finally,theprojecttouchesupontheinterfaceswiththeotherteams,soastogainan
insightonhowandwhatotherareasareworkingupon,andhowtheeffortsofallthe
teamscanbecoordinatedsothatthefinalaimoftheproject,i.e.understandingthe
applicationandimportanceofsupplychainmanagementandintegratedlogisticsin
todaysrapidlychangingmarketscenario,maybeaccomplished.

II.MissionStatement[SS]

ThemissionoftheSimulationandModelingTeamistodesignamodelofthesupply
chainsystem,executethemodelonArena3.0software,andanalyzetheexecution
output.Thismissionisaccomplishedbysubdividingtheentireworkintothe
followingtasks:
a) Gaininganinsightintothehistoricalperspectivesofsimulationbyanalyzing
itsgrowthfromamilitaryandacademictooltothecurrentindustrialsituation
whereitsuseisdiverseandextensive.

b) Definingandexplainingtheprocessflowofmanufacturing,distribution,
transportation,andinformationsystemsandtheirinteractionswitheachother
inthesupplychain,therebyleadingtoanindividualandintegratedsimulation
model.
 c) Seeingsimulationprospectsthroughstrategicissuesinlogisticsandsupply
chainmanagementwiththeconsiderationofissuessuchas:JIT,Quick
Response,ProcessReengineering,ElectronicDataInterchange(EDI),
DistributionRequirementsPlanning(DRP),andFlexibleManufacturing.

d) Interactingeffectivelywithotherprojectteamssoastogaininsightintotheir
work,explainourwork,anddevelopasimulationmodel.

III.IntroductiontoLogistics[AB]
A.Definition

LOGISTICSISTHEARTANDSCIENCEOFMANAGEMENT,ENGINEERING
ANDTECHNICALACTIVITIESCONCERNEDWITHREQUIREMENTS,
DESIGNANDSUPPLYING,MAINTAININGRESOURCESTOSUPPORT
OBJECTIVES,PLANSANDOPERATION.

SOCIETYOFLOGISTICSENGINEERS(SOLE)1974.
Fiercecompetitionintodaysmarkethasforcedbusinessenterprisestoinvestinand
focusonsupplychains.Thegrowthintelecommunicationandtransportation
technologieshasledtofurthergrowthofthesupplychain.Thesupplychain,also
knownasthelogisticsnetwork,consistsofsuppliers,manufacturingcenters,
warehouses,distributioncentersandretailoutlets,aswellasrawmaterials,workin
processinventoryandfinishedproductsthatflowbetweenthefacilities.

Thelogisticsmanagementtakesintoconsiderationeveryfacilitythathasanimpacton
cost.Itplaysanimportantroleinmakingtheproductconformtocustomer
requirements.Alsoitinvolvesefficientintegrationofsuppliers,manufacturers,
warehousesandstoresandencompassesthefirmsactivitiesatmanylevels,fromthe
strategiclevelthroughthetacticaltotheoperationallevel.

Logisticsisachallengingandimportantactivitybecauseitservesasanintegratingor
boundaryspanningfunction.Itlinkssupplierswithcustomersanditintegrates
functionalentitiesacrossacompany.Withtheevergrowingcompetitionintodays
marketplaceitbecomesnecessaryforafirmtouseitsresourcestofocusonstrategic
opportunities.Thisincludesseveralinternalfactorslikemanagementstyle,culture,
humanresources,facilitiesandseveralexternalfactorsliketechnology,globalization
andcompetition.Thisiswheretheconceptoflogisticsplaysamajorrole,i.e.ithelps
toleveragecertainadvantagesthefirmhasinthemarketplace.

B.RoleofLogistics

Letsusnowhavealookathowlogisticsworks.Itisimportanttorecognizethe
importanceofadynamicbalancebetweentheminutedetailsandthemainelements
involvedinaproduct.TheRoleofLogisticsistomaintainthatbalance.Oncethefirm
realizestheimportanceoflogisticsitisnecessarythatthefirmmakefullandefficient
useoflogistics.Thefirststepistocreateabuyervalueforthecustomeranda
strategicvalueforthefirm.
Thecustomeristhemostimportantassetforacompany.Hedrivestheentiresupply
chainincludingmanufacturing,marketingandlogistics.Henceitisimportantfora
firmtohaveaclearunderstandingofwhatthecustomerdemandsandtokeepupto
thecustomersexpectations.Onceacompanyhasaclearunderstandingofits
customersrequirementsitmustdeviceastrategyonhowtouselogisticstoachieve
it.Thismeansthatthecompanyhastohaveaclearunderstandingorassessmentof
companysstrategicdirection.

Nowletstakealookatthevariousstepsinvolvedinalogisticsstrategydevelopment
andplanningprocess.

Visioning:thisincludesthesystematicdevelopmentofanorganizationalconsensus
regardingthekeyinputstothelogisticsplanningprocessaswellasidentificationof
thepotentialalternativelogisticsapproaches.Thisisanimportantstepforthe
followingreasons:

Helpstodefineastrategicdirectiontothecompanyandalsotogetaclear
understandingtheroleoflogisticsinit.
Getaclearideaoftherequirementsofthevarioussegmentsofcustomers.
Havealookatthevariousfactorsthatwouldaffectthestrategyofthe
company.
Definealternativestrategiesandalsothescopeoftheplanningeffort.

Strategicanalysis:thisinvolvestakingalookatthevariouscomponentsinvolvedin
theprocessandselectingthebestlogisticsprocessamongthealternatives.These
components,whicharetobereviewed,arerevealedduringhefirststep.Thismay
includerevampingtheentireprocesstoassessinghowasinglecomponentcanbe
usedmoreeffectively.
Planning:thisinvolvestheassemblingofaplanthatoutlinesthemissionandgoals
forthelogisticsfunctionandtheprogramsandactivitiestoachievethesegoals.
Logisticsplanningisaniterativeprocess.Theplanshavetoberedefinedeveryyearto
improvethequalityofperformance.

Managingchange:thisinvolveseffectivemanagementtoimplementenhancedways
ofconductingbusiness.Themanagementshouldkeepingchangingtheplansin
accordancewiththechangeinthemarketandalsocoachtheorganizationto
effectivelyembracethischange.

C.CurrentLogisticsRelatedIssues

Thereareseveralfactorsthataffectlogistics.Theseissuesneedtobeanticipated,
preparedforandtakenadvantageofforacompanytobesuccessfulintodaysmarket.
Theyare

External:
Globalisation
Technology
 Workforce2000
challengingnatureoftheworkforce
Environmentalconcerns
Internal:
Customerserviceandquality
Thirdpartynetworks
Supplychainmanagement
Changesinmanagementandorganizationstyle

Listedbelowaresomeofthestepsthatcouldbefollowedtomitigatetheabove
mentionedissues:

Performance:
Betterserviceforcustomers
Improvedproductivity
Assessjustintimeandquickresponseneeds

Systemstructure:
Betterrelationshipwithvendors,customersandthirdpartiestomore
effectivelymanagethesupplychain
Betterrelationshipwithinandacrosstheorganization

Technologyintegration:
Betterinformationsystemsthatconnectfunctionsandorganizations
Combineinformationandmaterialhandlingsystemsforincreasedefficiency
andeffectiveness.

IV.IntroductiontoModelingandSimulationSystems
A.HistoricalPerspective[SS]

TodaySimulationisarguablyoneofthemostmultifacetedtopicsthatcanfacean
IndustrialEngineerintheworkplace.Itcanalsobeoneofthemostimportanttoa
corporation,regardlessoftheindustry.Quality,safetyandproductivityareall
affectedbySimulation,whethertheissuesoccurintheoffice,onthemanufacturing
floor,orinawarehouse.Thisarticleisfocussedtowardsprovidinginformationonthe
developmentofIndustrialProcessSimulationfromthestageofinfancytothecurrent
stagewhereitisusedasapowerfultoolforincreasingthecompetitivenessandprofits
ofthecompany[5].

Simulationisextensivelybeingusedasatooltoincreasetheproductioncapacity.
SimulationsoftwareusedbyCymerInc.(leadingproduceroflaserillumination
sources),increasedtheproductioncapacityfrom5units/monthatthebeginningof
1999to45/monthattheendof1999,anincreasebyaround400%[5].

Visualizationandgraphicshaveundoubtedlymadeahugeimpactonallsimulation
companies.Easytousemodelinghasresultedinlowpricedpackagesthatwould
havebeenunthinkablejustafewyearsago.TheSimulationtechnologyhasshotupin
valuetootherrelatedindustries.TheSimulationindustryiscomingofageandisno
longerjustthedomainofacademics.

Thisarticleprovidesinsightintotheworkingenvironmentandintellectualand
managerialattitudesduringtheformativeperiodofsimulationdevelopment.Italso
suggestsabasisforcomparisonwiththecurrentpractices.

ThehistoryofcomputersimulationdatesbacktoWorldWarIIwhentwo
mathematiciansJonVonNeumannandStanislawUlamwerefacedwiththepuzzling
problemofbehaviorofneutrons.Hitandtrialexperimentationweretoocostlyandthe
problemwastoocomplicatedforanalysis.Hence,theRoulettewheeltechniquewas
suggestedbythemathematicians.Thebasicdataregardingtheoccurrenceofvarious
eventswereknown,intowhichtheprobabilitiesofseparateeventsweremergedina
stepbystepanalysistopredicttheoutcomeofthewholesequenceofevents.Withthe
remarkablesuccessofthetechniquesonneutronproblem,itsoonbecamepopularand
foundmanyapplicationsinthebusinessandindustry[1].

Thiswasatime,inthepostwarworld,whennewtechnologies,developedfor
militarypurposesduringthewar,begantoemergeasnewproblemsolvingtoolsin
theworldatlarge.Atthattimethefieldofcomputingwasdividedintotwo
approaches:analoganddigital.Analogcomputerswereparticularlysuitablefor
problemsrequiringthesolutionofdifferentialequations.Analogcomputersused
electronicDCamplifiersconfiguredasintegratorsandsummerswithavarietyofnon
linear,electronicandElectromechanicalComponentsformultiplication,division,
functiongeneration,etc.Theseunitsweremanuallyinterconnectedsoastoproducea
systemthatobeyedthedifferentialequationsunderstudy.Agreatdealofingenuity
wasoftennecessaryinordertoproduceaccurate,stablesolutions.Theelectronics
usedvacuumtubes(valves),asdidtheearlydigitalcomputers.Thetransistorwasstill
someyearsinthefuture[3].

Inthelate40sandearly50s,commerciallydesignedcomputers,bothanalogand
digitalstartedtoappearinanumberoforganizations.Unsuspectingmembersofthe
technicalstaffsoftheseorganizationssuddenlyfoundthemselvesresponsiblefor
figuringouthowtousetheseelectronicmonstersandapplythemtotheproblemsof
theday.Onesuchengineer,workingattheNavalAirMissileTestCenteratPoint
MuguontheCaliforniacoastnorthofLosAngeles,wasJohnMcLeod,whotook
deliveryofanewanalogcomputersometimein1952.Johnwasnottheonlyengineer
intheaerospacecommunityinSouthernCaliforniafacingthesameproblems,anda
fewofthemdecidedtogettogetherasaninformalusergrouptoexchangeideasand
experiences[3].

Computersimulationwasnotausefultoolinthe1950s.Simulationtooktoolongto
getresults,neededtoomanyskilledpeople,andasaresultcostaconsiderableamount
inbothpersonnelandcomputertime.Andmostdisheartening,resultswereoften
ambiguous.Oneexampleistheattempttomodelthefielddataforpeakperiodsin
caseoftelephonesystems.Thisisbecausethesystemdidnotconformtothequeuing
theoryusedduringthosedays.Onetechniqueusedwasdiscreteeventcomputer
simulation.ThetoolsavailablefortheapproachwereanIBM650,assembly
language,andateamofmathematician,asystemsengineerandaprogrammer.The
teamaccomplishedlessthanhalfofwhattheyweresettodo,tooktwiceaslongand
overspentthebudgetbyafactoroftwo[2].

Thecomputersystemsofthe60swerepredominantlybatchsystems.Bothdataand
theprogramwerefedtothecomputerinabatchviapunchedcards.Sourcedatawere
takenonformsfromwhichkeypunchoperatorspreparedthepunchedcards.Data
Processorsdevelopedtheprograms.Theearlyuseofpunchedcardsinmanufacturing
waspredominantlyseenintheirinclusioninjobororderpacketsformaterial
requisition,laborreportingandjobtracking.Amainstayofthatperiodwasthe
classicalIBM1620[5].

InOctober1961IBMpresentedthe"GordonSimulator"toNorden(systemsdesign
company).InDecember1961GeoffreyGordenpresentedhispaperatthefallJoint
ComputerConferenceonaGeneralPurposeSystemsSimulator(GPSS)[1,2].This
newtoolwasusedtodesignthesystemfortheFAAtodistributeweatherinformation
togeneralaviation[2].

IBMprovidedthesoftwareandhardware.Theteamwasabletoconstructthemodel,
simulatetheproblem,andobtainanswersinonlysixweeks.Anewtoolhadbecome
availableforsystemsdesigners.Withthesuccessofthistoolmodelsbegantobe
producedforoutsidegroupsbyNordenandasimulationactivitywasestablished.
Earlysimulationgroupswereestablishedat:Boeing,MartinMarietta,AirForce
LogisticsCommand,GeneralDynamics,HughesAircraft,Raytheon,Celanese,
Exxon,SouthernRailway,andthecomputermanufacturerswereIBM,ControlData,
NationalCashRegister,andUNIVAC[2].

HowevertheusersofGPSSfromIBMwereconcentratingonaspectsofcomputer
systemsverydifferentfromtheNordensystems.GeoffreyGordensconceptwasthat
theactualdesignerswoulduseGPSS.Butthedesignengineerspreferredto
communicatetheirproblemstoprogrammersorasimulationgroup.Theinteractions
amongtheGPSSsimulationgroupsoccurredthroughtheIBMusersgroup
conference,SHARE.Itwasahugemeetingandthoseinterestedinsimulationhad
onlyonesession[2].

Meanwhile,atRandCorporationHarryMarkowitz,BernardHausner,andHerbert
KarrproducedaversionofSIMSCRIPTin1962tosimulatetheirinventoryproblems.
Elsewhere,therewereotherapproaches.InEnglandJ.BuxtonandJ.Laskideveloped
CSL,theControlandSimulationLanguage.AnEarlyversionofSIMULAwas
developedinNorwaybyO.DahlandK.NygaardandDonKnuthandJ.McNeley
producedSOLAsymbolicLanguageforGeneralPurposeSystemSimulation.Ken
TockerwroteashortbookontheARTOFSIMULATION[4].

Thecharacteristicsofthisperiodwerequantitiesofsimulationlanguage
developmentsandfeweffortstocoordinateandcomparethedifferentapproaches.
Therewas,also,noorganizedactivitytohelpusersgetstartedorprovideguidance.
Thefirststeptoaddresstheselimitationswastolookatsimulationlanguages.This
wasdoneataworkshoponSimulationLanguagesatStanfordUniversityinMarchof
1964.ThenattheInternationalFederationforInformationProcessing(IFIP)Congress
inNewYorkinMayof1965therewasadiscussionoflanguagesandapplication,
whichinturnledtoanotherworkshopattheUniversityofPennsylvaniainMarchof
1966.Oneresultofthisworkshopwastherealizationthatanarrowerconferenceon
theusesofsimulationwasneeded[4].

Inresponsetotheseneeds,anorganizinggroupwasestablishedcomposedof
membersosfSHARE,JointUsersGroupofACM,andtheComputerandSystems
ScienceandCyberneticsGroupsofIEEE.ThisgrouporganizedtheNovember1967
ConferenceonApplicationofSimulationusingtheGeneralPurposeSimulation
System(GPSS).HighlightsoftheconferenceincludedaspeechbyGeoffreyGordon
whospokeatlengthon"TheGrowthofGPSS"andtherewasasessiononmachine
interferenceforGPSS.

Encouragedbythesuccess,theorganizinggroupsetouttomaketheconference
formatbroader,includeotherlanguagesandprovideaconferencedigest.In
December1968asecondconferenceontheapplicationsofSimulationwasheldin
NewYorkatthehotelRooseveltwithoversevenhundredattendees.Forthat
conference,whatistodayknownasSCSbecameasponsoranda368pageconference
digestwaspublished.Thatconferencebecamethefirstonetoaddress,ingreat
variety,themanyaspectsofDiscreteEventSimulation.Therewereatotalof78
paperspresentedattwentytwosessions[4].

Thefollowingtopicswerediscussedintheconference[4]:

1. "DifficultiesinconvincingTopManagement"
2. SessionswithpapersonStatisticalConsiderations,randomnumbergeneration
forGPSS/360,languagesSIMSCRIPT2,SIMULA67,SPURT,asimulation
tutorialandthecaseforFORTRANAMinorityviewpoint.
3. Sessionscoveredtransportation,computersystems,manufacturing
applications,reliabilityandmaintainability,graphicsandGPSSmodifications,
simulationandhumanbehavior,distibutionsystems,communications,urban
systems,gamingmodels,jobshops,materialshandling,marketingmodels,
languagesformodelingcomputersystems,facilityplanningmodels,and
simulationandecology.

In1969thirdconferenceontheApplicationofSimulationwasheldinDecemberin
LosAngeles.OnesignofbecomingestablishediswasthatbothAIIEandTIMS
joinedassponsors.AmongthenewitemswereGASPandasessiononhealth
systems.The1970and1971fourthandfifthconferencewereheldinNewYorkfor
thelasttime.ThefourthconferencediscussedthefirstGPSStutorialbyTom
Schriber.ThefifthconferencebecamethefirsttobetitledtheWINTER
SIMULATIONCONFERENCE.ThenumberoftutorialsgrewwithAlanPritsker
coveringGASP2ANDYenChaoSIMSCRIPT.Aneducationsessionwasadded
sincemanyschoolswereofferingcourseinbothconinuousanddiscreteevent
simulation.ThefirstSIMSCRIPTtutorialbyEdRussellwaspublishedin1976.Inthe
1977conferenceheldinWashington,D.C.twonewsessionsonagriculturaland
militarysystemswereadded.Therewasalsoanincreasedinterestintheinternal
workingsofthelanguage.OneexamplewasanIMPROVEDEVENTSLIST
ALGORITHMpresentedbyJimHenriksen[3].

SimulationwasatopicthatwastaughttoIndustrialEngineersinschoolbutrarely
applied.Longhoursspentatthecomputerterminalandseeminglyendlessrunstofind
anobscurebuginalanguagewaswhatsimulationmeanttoI.E.graduatesinthe70s.
Whenspreadsheettoolswerefirstintroducedinthelate1970stheywereonlyusedby
a"fewtruebelievers".Thepopularityofsimulationasapowerfultoolincreasedwith
thenumberofconferencesandsessions.Thenumberofsessionsheldonsimulation
doubledby1971andcontinuedtorisetoaboutfortysessionsin1977andsixty
sessionsin1983ascomparedto12in1967.Asignofthegrowingmaturityinthe
fieldwasaPanelDiscussionatMiamiin1978ontheFAILURESOFSIMULATION,
focussingonwhatcananddoesgowrongandapaperonMANAGING
SIMULATIONProjects.In1979theconferencewasheldinSanDiegoandin1980it
washeldinOrlando.Thereweremoretutorialsandpaperswereorganizedintotracts
ofsessionsforbeginners,intermediate,andadvancedpractioneers[3].

Twocommonfearsofsimulationinearly80swere[5]:

Simulationisextremelycomplicated,soonlyexpertscanuseit.
Simulationtakesforeverbecauseofprogramminganddebugging.

However,thenumberofcomputerizedsystemsincreasedfromrelativelyfourinthe
1970stoagreatmanyinthelate70sandearly80s.Asurveyofcommercially
availableproductionmanagementsystemspublishedbyCAM1in1981listed283
differentcomputerizedsystemsavailableandmostofthesystemslistedinthereport
wereunder$50,000.
Thesuddencommercialavailabilityoflargenumberofcomputerizedmanufacturing
systemswascomplementedbytheemergenceofanextensivearrayofavailable
computerhardwareandsoftware,particularlyfrom1980on.Atthesametime,the
attractivecomputerprice/performancereductionwasfuelingasimilarexplosionof
computingapplicationsinengineeringdesignandplantautomation[5].

In1982mostsimulationsoftwareconcentratedonmaterialrequirementsplanning
(MRP),whichconsidersonlythetimingandsizingoforderswithoutregardto
capacitylimitations.Softwaredidntadvancebeyondthisstagetogiveatruemeaning
toautomatedfactory.Hundredsofrobotsandmillionsofdollarsworthofcomputer
controlledequipmentwereworthlessastheywereunderutilizedandspenttheirtime
workingonthewrongpartbecauseofpoorplanning.In1982personal
microcomputerswere16bitmachinescapableofholdingmemoriesoftheorderof
128k,256k,oreven512k.Notmuchsoftwarewasavailabletotaketheadvantageof
the16bitmicroprocessorandtheadditionalmemory.In1983thenumberof
companiesusingsimulationwassmall.Withtheevolutionofinformationsystemsthat
cancollectandstoremuchofdatanecessarytobuildandmaintainmodels,simulation
forproductionplanningbecamemorefeasible.Thewidelyusedfactorymanagement
systembyCAMIsupportedanddistributed,closedloopcontrolofshopfloor
operationsandclosedloopcommunicationsbetweenplanningandoperations
functions.Oninstallingsuchasystemmuchoftheproblemsassociatedwithbuilding
andmaintainingsimulationmodelswaseliminated[5].

WiththedevelopmentofSLAMIIbyPritskerandassociatesin1983simulation
softwarebecameapowerfultool.ItwaspopularlyusedontheIBMPC.SLAMII
providedthreedifferentmodelingapproaches[5]:

1. Network
2. Discreteevent
3. Continuousandtheflexibilitytouseanycombinationoftheminasingle
simulationmodel;Itscostwas$975.

Late80ssawthedevelopmentofSIMANIVandCINEMAIV,thenewestin
simulationandanimationsoftwarebysystemsmodeling.Allcodewasself
documented,modelsofcomplexsystemscouldbedevelopedentirelywithinSIMAN,
witheasytousemenudrivenframework.Newinteractivecapabilitiesaidedin
constructingandvalidatingthesimulationmodel.Expandeddrawingfeatures,real
timeplotsandfrequencygraphicsaddedtoCINEMASnewability[5].

In1984thefirstsimulationlanguagespecificallydesignedformodeling
manufacturingsystemswasdeveloped.Inthelate80swiththedevelopmentofthe
discreteeventsimulationmodel,themanagementwasabletoassessthecostbenefits
ofalternatives,maintenancestrategies,convertingequipmentrepairsandcapital
replacements[5].

Intheearly90ssoftwaresuchasEMSversionofGPSS/PCbegantoemerge,which
allowedusersofIBMcompatiblepersonalcomputerstoaccessadditionalmemory,
abovethe640klimitimposedbytheoriginalPCarchitecture.EXTENDwasa
Macintoshbasedgraphicalbehaviorsimulationapplicationthatsupportedboth
discreteandcontinuouseventsimulation.MICSIMversion3.0providedmodeling
capabilitiesandfeaturesthatweresoeasytolearnandusethattrainingandconsulting
serviceswerenolongerneeded.GPSS/Hwassupportedbyawidevarietyof
hardwareintheindustry,fromPCsandmostUnixworkstationstoVAX/VMSand
IBMmainframesystems.Itofferednumerousextensions,whichpreventedusersfrom
havingtowriteexternalcodeinFortranorC.MASTprovidedasingleenvironment
forthedesign,acquisitionandoperationofmanufacturingsystems.Itrequiredno
programming,nomodeling,notevenatexteditingwasrequiredtostudyaproduction
system[5].

Thepowerofsimulationasatoolbecameevidentinthemiddle90s.Challengeswere
facedbycompanieslikeUniversalDataSystems(ultramodernelectronicsassembly
plant).Thehurdlewastoconverttheentireplanttoahybridflowshopwherean
individualunitwouldbesenttothenextoperationassoonasitwascompletedatthe
currentoperation.Oneseriousreservationforthischangewastheimpactonfinished
goodsinventory.Experimentswerecarriedoutusingthesimulationprogramwritten
inGPSS/PC(Minuteman)usinganIBMPC/AT.Theentireprogramtook30daysto
simulateandtheresultswerepositivewiththeeventualconversionoftheentireplant
toaflowshopenvironmentascomparedtotheoriginalbatchenvironment[5].
Modelswereincreasinglyusedtodesignnewplantsandtoplantheflowofworkin
thesenewfacilities.Theinfluenceofgraphicsbecamemoremarkedandanumberof
vendorsusedtheconferenceexhibitspacetodemonstratetheadvantagesoftheir
systembyactuallybringingacomputertotheconferencesite.Technologyhadmoved
sofarthatsimulation,forthosewhowereskilledintheart,becamequicker,cheaper,
andmuchmoreresponsivetothedesignsofthemodelconstructor[5].

In1998softwaresuchasMicroSaintversion2.0forWindows95begantostandout.
Itprovidedautomaticdatacollection,optimizationandnewWindowsinterface.In
additiontothis,itdidnotrequiretheabilitytowriteinanyprogramminglanguage.
Today,Simulationhasadvancedtosuchastagethatthesoftwareenablestheuserto
model,execute,andanimateanymanufacturingsysteminanylevelofdetail.A
complex2000footconveyorcanbemodeledinminutes.Theproducts,equipment
andinformationisrepresentedbyasingleentityassociatedwithfourdimensions(X,
Y,Zandtime)andadefinitionofitsbehavior[5].

Advancedversionsofsimulationsoftwaretoday,supportthefollowingfeatures[5]:

Uniquelystructuredenvironmentletstheusertoquicklyenterthegeometry
andproductionrequirementsofamodel.
Expertsystemtechnologygeneratesdetailsautomaticallywhilewindowsand
popupmenusguidetheuserthroughthemodelingprocess.
Changescanbemadequicklyandeasilywithfarlesschancesoferrors.
Builtinmaterialhandlingtemplatesmaketheusermoreproductive,sohe/she
doesntwastetimeprogramming.
Theusercanverifyandtestdesigns,answer"whatif"questions,exploremore
alternativesandcatchsystemglitchesand3Danimationallbefore
implementation.
3Dgraphicsareautomaticallycreatedastheuserentersdata.
Resultscanbecommunicatedinrealtimeanimation.[Ref5]

Thishistoryprovidesaspringboardfromwhichtoextrapolateafewpredictionsfor
simulationcapabilitiesofthefuture.ThefutureofSimulationmayinvolveintegration
withothertechniquesandothersoftwareapplications.CompanieslikePritsker
acquiredSymix,aproducerofEnterpriseResourcePlanning(ERP)software.Deneb
RoboticswasacquiredbyDassaultSystems,amakerof3DCADsoftware.
Simulationhasdevelopedinleapsandboundssincethe90sanditispredictedthatin
thefuturecompaniesnotusingsimulationsoftwaremaybefacedwiththechallenge
tostayafloatinthecompetitiveworld[5].

A.IntroductiontoArenaSimulation[SS]

Simulationisoneofthemostpowerfulanalysistoolsavailabletothoseresponsible
forthedesignandoperationofcomplexprocessesorsystems.Inanincreasingly
competitive world, simulation has become a very powerful tool for the planning,
design,andcontrolofsystems.Nolongerregardedastheapproachoflastresortit
is today viewed as an indispensable problemsolving methodology for engineers,
designers,andmanagers[7].

ThisarticlepresentssomeimportantfeaturesoftheARENA3.0software.Thiswould
helpthebeginnertounderstandthebasicconceptsnecessaryforbuildingasimple
model.Thisinturncouldprovideaspringboardforbuildingupcomplexrealworld
models.

ASimpleSimulationModel

Let us consider a simple simulation model. Suppose we have a singlechannel

queuing(waitingline)system,suchasacheckoutcounterinadrugstore.Thetime
betweenthearrivalofcustomersisuniformlydistributedfrom1to10minutes.Thisis
obtainedbymeansofaspinnerdial(suchasthoseusedinsomeboardgames).The
timerequiredtoserviceacustomerbeuniformlydistributedbetween1to6minutes.
A single die can be used to generate service times. The system has two random
variablesandifalargenumberofreadingsneedtobegenerated,acomputerisneeded
forgeneratingtherandomvariablesandfordoingthebookkeeping.Tosimulatereal
worldsystemsadequately,wemustalsobeabletogeneratebehavioralcharacteristics
that are realistic. For example, the time between arrivals and the service times
generatedmustallowforsomethingotherthanuniformdistributionroundedtothe
nearestwholenumber[7].

DistributionSelection

To test the compatibility of a set of observed frequencies with some theoretical

frequency,wemustfirstidentifythetheoreticaldistributionwewishtotry.Ifweare
dealingwithadiscretevariable,werecordthefrequencyoccurringwithinwhicheach
individualvalueoccurs.Ifthevariableiscontinuous,webreaktherangeofvalues
into equal interval or class. The relative frequency in each interval is then the
observedfrequencycountineachclassdividedbythetotalnumberofdatapoints[7].

After we have obtained a relative frequency distribution, selecting the possible

probabilitydistributionfromwhichitmaybederivedbecomesamatterofjudgeand
experience[7].

Some examples of continuous distributions are uniform, triangular, negative

exponential,Erlang,gamma,Weibull,normal,lognormal,andbeta.Someexamples
ofdiscretedistributionsarediscreteuniform,binomial,geometric,andPoisson[7].

GoodnessofFitTest

Once we have selected a distribution (based on visual inspection and theoretical

grounds),wethenneedtoassessthequalityofourfit.Thiscanbedonebyusing
formalstatisticaltestsorbyemployingasimplegraphicalmethodinwhichanoverlay
ofthetheoreticaldistributionisdisplayedonahistogramofthedataandavisual
assessmentismadetodeterminethequalityofthefit.Agoodnessoffittestattempts
tomeasureandevaluatethedeviationofthesampledistributionfromthetheoretical.
Examples of these tests include both the ChiSquare (x^2) and the Kolmogrov
Smirnovtests[7].

BasicModelingConcepts

INARENA3.0environment,theword"entity"isagenerictermusedtodenoteany
person,object,orthingwhosemovementthroughthesystemcauseschangeinthe
stateofthesystem.Everyentitypossessessomeuniquecharacteristicsreferredtoas
attributes.Forexampleinafactoryajobmayhaveattributesspecifyingthepart
number,duedate,andpriorityofthejob.Thetermvariables,referstothesetof
changeablevaluescharacterizingthecomponentsofthesystemasawhole.Example
ofavariableisTNOW.Itspecifiesthecurrentvalueofthesimulatedtime[8].

IntheARENA3.0modelingframework,thereisafundamentaldistinction between
theModelandtheExperiment.Themodelisafunctionaldescriptionofthesystems
components and their interactions. The experiment defines the experimental
conditionsunderwhichthemodelisexercisedtogeneratespecificoutputdata.An
ARENA3.0 simulation program generates both a model and corresponding
experiments[8].

ProcessesaremodeledinSIMANbyusingablockdiagram.Ablockdiagramisa
flowgraphdepictingtheprocessthroughwhichtheentitiesinthesystemmove.The
blockdiagramisconstructedasasequenceofblocks,theshapesandnamesofwhich
indicatetheirgeneralfunction.Theexperimentalsectionoftheprogramconsistsof
elementswhich,arespecifiedinteractivelyintheArenamodelingenvironment[8].

Blocks
Thefollowingsectiondescribesinbriefthedifferentblocksusedbythesimulation
team.

CREATE:Itisoneoftheseveralmechanismsbywhichanentity(product)canenter
into the model. It is typically used to model arrival processes in which entities
sequentiallyenterthemodelaccordingtoaspecifiedpattern.TheoperandsofCreate
blockareBatchsizeindicatingthenumberofentitiesarrivingsimultaneouslyinthe
model,Offsettimespecifyingthetimebetweenthestartofsimulationandthearrival
ofthefirst entity,Intervalspecifyingthedelaybetweenthearrivalsatsuccessive
pointsafterthefirst.TheMaximumBatchesoperandspecifiesthemaximumnumber
ofarrivalpoints[8].

QUEUE:Itprovideswaitingspacefortheentitieswhosemovementsthroughthe
modelhavebeensuspendedbasedonthesystemsstatus.Anexampleisaworkpiece
Waitinginturntobeprocessedonabusymachine.Theoperandsofqueueblockare
QueueIDindicatingthenameofthequeue,CapacityofthequeueandtheBalklabel
whichisusedtodirecttheentitytoanalternativeblockotherthantheseizeblock[8].
SEIZE:Itisusedinconjunctionwiththequeueblockandisusedtomodelthestatus
delays.Whenaresourcebecomesidletheentityfromthepreviousqueueblockenters
theseizeblockandseizestheresource.Thestateoftheresourcenowchangesfrom
idletobusy.Theoperandsofseizeblockincludepriorityfortheallocationofentities
waitingforthesameresource.Priorityisgiventothoseentities,whichhavebeen
waitingthelongest.TheResourceIDindicatingtheresourcerequestedbythewaiting
entityandthenumberofunitsoftheresourcerequestedbytheentity[8].

DELAY: Once an entity has been allocated the necessary resources, it typically
engagesintimeconsumingactivities,suchassetup,machining,inspectionetc.In
ARENA3.0,delayssuchasthesecanbemodeledbyusingtheDELAYblock.The
operandsofthedelayblockarethedurationofthedelayandthestorageID,which
providesstatisticsonthenumberofentitiesresidinginoneormoreDELAYblocks
[8].

RELEASE:Whenanactivitythatrequiresresourceshasbeencompleted,theentity
possessing the resources typically releases them so that they can be allocated to
entitieseithercurrentlywaitingoryettoarriveatQUEUESEIZEblocks.Operands
ofseizeblockareResourceIDindicatingtheresourcejustreleasedandtheQuantity
ofentitiestoreleasesimultaneously[8].

COUNT: Itisusedtocountthenumberofoccurrencesofsomeevent,e.g.,work
piecesenteringthesystem,exitingthesystemorsentthroughrework.Theoperands
oftheCountblockincludetheCounterID(nameof thecounter)and theCounter
incrementforwhich,adefaultvalueofoneisassumed[8].

DISPOSE:Itprovidesamechanismformodelingthedepartureofentitiesfromthe
system.Thedisposeblockhasasingleentrypoint,nooperands,andnoexitpoints.
Allentitiesenteringthedisposeblockareterminatedfromthemodel[8].

GROUP: It is commonly used to group a set of entities having a particular set

characteristics.Arepresentativeentityiscreatedanditmovesthroughthemodeland
behaves,asthough,itisasingleentity.Themostimportantoperandofgroupblockis
thequantitytogroup.Thisiscommonlyusedtosimulateamanufacturingscenarioin
whichasetofpartscorrespondingtoaparticularproductneedtobegroupedbefore
theycanbeassembledbythemachine[8].

SPLIT:Theentities,whichhadbeengrouped,needtobesplitordegroupedbefore
theyaredisposed.Thesplitblockisusedforthesame.Thedepartingentitieshavethe
originalattributevaluestheyhadwhentheentitysetwasformed[8].

ASSIGN: Wheneverattributesandvariablesareusedinamodeltheyneedtobe
assignedvaluesduringmodelexecution.Thisismadepossiblebymeansoftheassign
block.TheoperandoftheblockisVariableorAttribute=Value.Eachtimeanentity
passesthroughtheASSIGNblock,thevalueontherighthandsideoftheequalssign
iscopiedontothevariableorattributeonthelefthandsideoftheequation.Example
whentheentitiespassthroughtheCREATEblocktheycanbeassignedajobtypeof
1,2,3withacertainprobabilityoftheentitybelongingtoeachtype[8].

BRANCH: This is used to direct the entities to different sections of the model
dependingupontheconditionoftrueorfalse.Theoperandsofthebranchblockare
thefollowing:

a. MaximumNumberofBranches(itisusually1).
b. With(indicatestheprobabilityandthelabeltowhichtheentityneedsto be
directed).
c. Else(indicatesthelabeltowhichtheentityneedstobedirectediftheelse
conditionbecomestrue).
d. Always(whatevertheconditiontheentityneedstobesenttoaspecificlabel).

Asdescribedearlier,experimentdefinestheexperimentalconditionsunderwhichthe
modelisexercisedtogeneratespecificoutputdata.Thelengthofthesimulationrun,
the number of replications of the simulation, the characteristics of resources and
queues,etcallcomeunderexperimentalconditions.Usingspecialdatarecordscalled
elements the experiment is developed. It is generally preferable to enter the
experimentbeforeenteringthemodel.Byfirstdefiningtheobjectssuchasresources
intheexperiment,thedropdownlistcanthenbeselectedwhenenteringthemodel
graphically[8].

Elements
Thefollowingsectiondescribesinbriefthevariouselementsusedbythesimulation
teamindevelopingtheproject.

PROJECT: It is used to describe the simulation project used by ARENA3.0 in

labelingtheSIMANsummaryreport.Theprogramautomaticallygeneratesthisreport
attheendofeachreplicationifitisdefinedundertheexperimentalconditions.The
operandsoftheelementincludeProjectTitle,AnalystName,Date,SummaryReport
(yes/no).Maximumof24characterscanbeenteredinthefirsttwofields[8].

QUEUES:Itdefinestheinformationofthemodelsqueues.Theoperandsofthe
queue element are Number (need not be defined), Name of the queue, Ranking
Criterion.Thefollowingcriterionareused:

a. FIFO(Firstin,Firstout):Entitieswaitinthequeueintheorderinwhichthey
arrive.
b. LIFO(Lastin,Firstout):Entitiesarerankedinthereverseorderoftheirentry
intothequeue.
c. LVF(AttributeID):Thequeueisorderedbyincreasingvaluesofthespecified
attributewithtiesbrokenbytheFIFOrule.
d. HVF (Attribute ID): Queue is ordered by the decreasing values of the
specifiedattributewithtiesbrokenbytheFIFOrule[8].
RESOURCES:Itdefinestheinformationaboutthemodelsresources.Theoperands
includeNumber(neednotbedefined),Nameoftheresource,Capacity,whichdefines
thenumberofidenticalandinterchangeableunitsthatinitiallyexistfortheresource.
Itdefaultsto1[8].

COUNTERS:Thiselementprovidesdescriptiveinformationofthecountersincluded
inthemodelsection.TheoperandsincludedintheelementareNumber(neednotbe
defined),Nameofthecounter,Limit.Thelastoperandspecifiesacertainvaluewhich
whenexceededcausestheprogramtoterminate[8].

REPLICATE:ItdefinestheNumberofReplicationsforwhichthesimulationistobe
run,theBeginningTimeofthefirstreplicationandtheReplicationLength,which
definesthedurationofeachsimulationreplication[8].

ATTRIBUTES: and VARIABLES: These elements provide general information

aboutthesymbolicnamesandpropertiesoftheattributesandvariables.Theoperands
oftheelementsincludeNumber(optional),Name(index),InitialValues.Thesecond
operandisusedtospecifyanarraywithcertainindexvalues.Eachelementinthe
arrayhasauniqueindexvalue,whichisstoredinacommonarrayname.Thethird
variableisusedtoinitializeavariabletoacertainvalue[8].

STATIONS: It defines the information of the stations used in the model. The
operandsincludeNumber(optional),Nameofthestation[8].

SETS:Itdefinesagroupofsimilarelementsthatmaybereferencedbyacommon
nameandsetindex.Theelementsthatmakeupthesetarereferredtoasthemembers
oftheset.Typicalsetswouldcontaingroupsofresources,queues,stations,pictures,
counters,tallies,expressions,etc.TheoperandsoftheelementareNumber(optional),
NameoftheSetandtheMembersoftheset.Thelastoperandcanbereferencedby
thesetname.ThefunctionusedbytheSimulationteaminbuildingthemanufacturing
model was MemIdx (Setname, Member Name). This function returns the index
numberofaspecificmemberintheset.Themembernamewasthefirststationat
whichtheentityenteredthemodel[8].

SCHEDULES:Thisisusedtochangethecapacityoftheresourceovertime.The
resourcefollowsatimedependentscheduleasspecifiedintheelement.Forexample,
theresourceisidleforthefirst30minutesofthesimulationrun.Duringthisperiodit
hasacapacityof0.Duringthenext30minutesoftheruntheresourcecanhavea
capacityof1.Theoperandsoftheelementinclude Identifier,whichisfedintothe
resource block following the schedule and Resource Capacity and the Capacity
Duration,whichspecifiesthecapacityoftheresourceduringacertaintimeperiod
[8].

SEQUENCES:Itdefinesthesequenceinwhichanentityvisits thestations.The
operands include Number (optional), Name of the sequence, Station ID and the
Assignments (duration of delay, assignment of picture or job type, etc.) at each
station[8].

Arena3.0VerificationToolsUsedbytheSimulationTeam

a. RUNCONTROLLER:Itallowstheusertostepthroughtheexecutionofthe
modelbyexercisingcompletecontrolfromthekeyboardorthemouse.The
entitycanbemovedthroughoneormoreblocks,itsvaluecanbeexaminedby
using simple commands. The execution can also be suspended at critical
pointsorwhenspecifiedvariablesreachdefinedvalues.Theruncontroller
also provides access to a models source statements, which can be listed
duringexecution[8].
b.
c. ANIMATION: Successful verification depends on ones ability to
comprehendthecomplexinteractionsamongthemanycomponentswithina
model. Of all the techniques available to help in the verification process,
animationiswithoutadoubtthesingle,mostpowerfulaidavailable.Only
animationcanpresentadynamicallymovingpictureofthemanyinteractions
taking place within the simulation. The animation displays the same
informationforallmodelcomponentssimultaneously[8].

Thisarticlehasprovidedabriefinsightastohowthesimulationteamhasusedthe
ARENA3.0simulationtooltodevelopthemodels.Thiswouldenablethebeginnerto
knowthevariousblocksandelementsusedbytheteamandserveasaguidefor
understandingthemanufacturingprocesses.Wesuggestthatthosepeoplewhodonot
have any exposure to simulation read this article before the presentation by the
simulationteam[8].

B.ComputerManufacturingModel[LR]

Thecomputermanufacturingmodeldiffersfromtheautomobilemodelwithregards
todetail,layout,andinputdata.Lessdetailedthantheautomobilemanufacturing
modelintermsofspecifyingindividualoperationsintheassemblystage,the
computermanufacturingmodelsimulatesfivemainstagesinassemblingandtesting
computers.Theseprocessesare:

1. Assembly
2. Electricaltesting
3. Softwareloading
4. Finaltestingandinspection
5. Packaging

Ratherthanhavingasingleflowlineasintheautomobilemodel,thelayoutofthe
computermodelconsistsoftworepetitiveparallellines,eachlineconsistingofthe
fivemainstagesasshowninthefollowingfigure:
ParallelLinesinComputerManufacturingModel

Eachlineisanalagoustoaworkcellinthatmaterialflowscontinuouslythrougheach
stagewithminimalinprocessinventories.Acompleteproductismanufacturedat
eachcell,whichusesequipmentforeachstageoftheproductionprocess.

AsdescribedintheManufacturingTeam'swebsite,atypicalmanufacturingplant
consistsoffourmaincomponents:

1. Receiving
2. ProductionProcessing
3. Packaging,and
4. Shipping

These components are incorporated in the computer manufacturing model in the

followingmanner:

Receiving
Orders ofvaryingsizesarriveinintervalsandareprocessedasfirstinfirstout.For
simplification, all requested computers in a particular order have the same
configuration.Theconfigurationconsistsofprocessortype,numberofboards,and
monitortype.Themodelspecifiesthreetypesofprocessors,twotypesofboards,and
twotypesofmonitors.Theseattributesareprobalisticallyassignedtoeachorderwith
12configurationspossible.Ordersaresenttotheleastbusylinebutwaittobefilled
untiltheassemblystageisfree.Themodelassumesthatallrawmaterialsforthe
assemblystagearereadilyavailableandaresufficienttofilleachorder.Thelogicfor
orderprocessinginArenaisshownbelow.
OrderProcessingLogicinComputerManufacturingModel

ProductionProcessingandPackaging
As mentioned previously, the production layout consists of two repetitive parallel
lines.Ordersarefedtoeachline,whichconsistsoffivestages.Theprocessingtimes
foreachstageare:assembly12minutes,electricalwiringtest5minutes,load
software 15 minutes, final test and inspection 5 minutes, and packaging 5
minutes.Theutilizationrateoftheassemblystageisdrivenbythenatureoftheorders
arriving:thesizeofeachorderandthetimebetweenorders.Queueformationsand
potentialbottlenecksmayoccurattheassemblyandloadingsoftwarestages,where
theprocessingtimesarehigh.Theseproblemsmaybeaddressedbyincreasingthe
capacityoftheresources,suchasaddingathirdassemblystageorloadingsoftware
for multiple computers at a time. Packaging involves selecting the appropriate
monitorfortheorderandsendingthepackagestotheshippingarea.

Shipping
Although thecomputermodeldoesnotspecificallysimulateshippingactivities,the
model is flexible enough to have this component included at a later date. One
considerationmayinvolvecombiningpackagingandshippingactivitiesintoonearea.

Theinputdataforthecomputermanufacturingmodelwasnotobtainedfromactual
existingdatafromanyparticularcomputermanufacturer.Insteadeducatedguesses
were made for order sizes and processing times. Although one of the tenets in
developinganysimulationmodelinvolvesobtainingactualdata,thisrequirementwas
lifted in order to show a simple manufacturing model that utilizes parallel
manunfacturing cells, and how the sizes, arrival, and number of orders affect
assemblyutilizationrates.

C.AutomobileManufacturingModel[AB]
Theautomobileisperhapsthemostimportantinventionsecondonlytoelectricityin
the 20th century. It has changed life of man in a way unimaginable before its
invention."Theworldtravelsonwheels"isthebuzzwordofthe20thcentury.The
manufacturingoftheseautomobilesisbothafascinatingandchallengingtask.The
simulation team has simulated the manufacturing process of wagons, sedans and
convertiblesinaToyotacarplant.

The following is the step bystep procedure for the manufacturing of cars in the
"ToyotaProductionSystem":

1. Themanufacturingprocessbeginswiththechassisassembly.Thechassisis
theskeletonofthecar.Itisthepartonwhichthecarisbuilt.
2. Axleandtiresarefittedtothechassisassembly.
3. Inthenextstage,theengineisfittedtothechassis.Theengineisthepower
producingcomponentofthecar.Thepowerproducedintheengineisuseto
propelthecar.Enginesaremostlyoftheinternalcombustiontype.
4. Thegearboxisthenfittedintothechassis.Thegearboxisthecomponentthat
isusedtochangethespeedsuppliedtothewheels.
5. Thenextstageinvolvesthefittingoftheradiatorintotheengine.Theradiator
helpsincoolingtheengine,transmittingtheexcessheattothesurroundingby
conduction.
6. Theseatsarethenfittedtothecarinthenextstage.
7. The battery is then fitted and electrical connections are carried out. The
electricalconnectionsconnectthevariouscomponentsofthecartothebattery.
8. Thebodyofthecaristhenfittedonthechassis.
9. Thewindshield,doors,andwipersarefittedtothecaralongwiththebonnet.
10. Thefinishingtouchesarecarriedoutonthecar.
11. Thecaristhensentforinspectionandtestingafterwhichitistakentothe
parkinglotandkeptreadyforshipping.

Belowisablockdiagramdescribingthemanufacturingflow.
 UFlowinAutomobileManufacturing

Thestudentversionofthemodellimitedthenumberofblockstobeused.The
challengewastousethelimitednumberofblocksavailablewithoutsimplifyingthe
process.ForthispurposeSetswereusedalongwithAttributessuchas"Worktime"
and"Optime."Givenbelow isabriefexplanationofattributes,variables,setsand
countersusedinthemodel.

Attributes

1. Worktime:IfthejobarrivingattheworkstationisaHardtoporaWagonitis
delayedbythedurationgivenintheworktimeattributeofthedelayblock.
2. Optime(operationtime):IfthejobarrivingattheworkstationisaSedanitis
delayedbythedurationgivenintheOptimeattributeofthedelayblock.
3. Setindex:Correspondstoaspecificworkstationinthesetofstations.
4. Timein(timein):Denotesthetimeatwhichajobarrivedinthesystem.
5. Jobtype(typeofjob):Denotesthatthetypeofjobisahardtop,wagonor
sedan.

Sets
1. Queueset:Signifiesallthequeuesalongthemainassemblyline,whichare
sequentiallyvisitedbythejob.
2. Stationset:Correspondstoallthestationsalongthemainassemblyline,which
aresequentiallyattendedbythejob.
3. Resourceset:Denotesalltheresourcesalongthemainassemblyline,which
aresequentiallyattendedbythejob.

Counters
1. Wagons:Numberofwagonsproduced
2. Hardtops:Numberofhardtopsproduced
3. Sedans:NumberofSedansproduced
4. Totalcars:Totalnumberofcarsproduced

Variables
Everyjobisdelayedattheworkstationforaspecificduration.Thisisobtainedby
fittingthehistoricaldataintheinputanalyzer.Inthemanufacturingmodelcasethe
durationofthedelayisLOGNORMALwithameanandstandarddeviation.Since
therearethreedifferenttypesofjobswithdifferentdelays,avariablearrayisdefined
withconstantsforthedistribution.Eachconstantinthearraysignifiesapartofthe
operandforaspecificjobinthedelayblock.Thefollowingthreeconstantshavebeen
defined:
1. Mean
2. C
3. Std

D.TransportationModel[AT]

Foranyorganizationhavingseveralmanufacturingfacilities,andahugeandspread
market, transportation remains an inevitable part of its total system. The
transportationmodeldevelopedbythesimulationteamservesasaguidelinetostudy
how automobiles manufactured at a particular facility are transported to various
places.

Followingisabriefprocedureonhowthistransportationtakesplace:

1. Atfirstallthecarsareaccumulatedinahugeparkinglot,whichalsoservesas
aloadingareaforthetrucksthatcarrythesecars.
2. Oncethespecifiednumberofcarsisavailable,theyareloadedontothetrucks
asperthecapacityofthetrucks.
3. Thesetrucksthentransportthevehiclestothespecifieddestination,suchasa
dock,whereallthesetrucksarethenhandedovertoadistributor.
4. Atthedock,thevehiclesareunloadedfromthetrucks,andthenloadedontoa
ship.
5. Oncetheshipisloadedtoitscapacity,itisthendirectedtoitsdestination,
whichmaybeothercountries,orwithinthenation,buttodifferentstates.

Theblockdiagrambelow,explainshowtheflowoftheautomobilestakesplaceonce
manufactured,tothetimetheyaredeliveredtotheirfinaldestination.

TransportationofManufacturedCars

Theattributes,variables,sequences,etc.thatareusedinthemodelareexplained
below:

Attributes:TimeInistheonlyattributeusedinthemodel,whichdetermines
whattimethecarenteredthesystem,forhowlongitwasinthesystem.
 Schedules:Thiselementdescribestheschedulesfortheresources,whenthey
areavailableandwhentheyarenot.
Counters: Counts the total number cars that are transported during the
specifiedtime.
Transporters:Therearetwotypesoftransporters,TrucksandShip,which
arebeingusedinthismodel.
VI.StrategicIssuesandOpportunities:CurrentAndUpcoming[LR]

Togainacompetitiveadvantage,businessesareapplyingsimulationtosupplychain
management(SCM).ThepathtothelogicalcombinationofSCMandsimulation
toolscanbeunderstoodbythestrategiesemployedbybusinessesoverthepast20
years.Thefollowingtableliststheareaofstrategicfocusandtoolsusedtoeffect
improvement.
TrendsinStrategicTools
Period Focus Tools
1980s Rawmaterialin,Finishedgoodsout Simulation
Early1990s Improveshippingoffinishedgoods Analyticaltools
Flowofmaterialfromsuppliertoend
Mid1990s SCMtools
user
Currently SupplyChain SCMandSimulation

Inthe1980s,businesseslookedbeyondmanufacturingtothebeginningandending
processestoimproveoperations.Applicationsofsimulationinvolvedshorteningthe
rawmaterialdeliverytimefromthesuppliertothemanufacturerandshippingthe
final product to the customer. In the early 1990s, increased competition forced
businessestodecreasetheshippingtimeoffinishedgoodstotheenduser.Toolswere
designed to specifically address the logistics surrounding shipping. By mid 1990,
businesses began to look at the flow ofmaterial from vendorto manufacturer to
customer. To deal with these issues, companies developed SCM packages which
incorporated and automated analytical tools such as linear programming and
scheduling, algorithms, and processes such as inventory control systems. Now,
businesses are realizing that vital information can be gained by employing both
simulation and supply chain management. This recent marriage has enabled
businessestoevaluatebothvariabilityandtheinterdependencyofthecomponentsin
thesupplychain[1,2].

Oneofthemostdifficultaspectsofabusinesstomanageisthesupplychain.The
supply chain consists of a network of suppliers, production and manufacturing
processes,warehousinganddistributionmethods,andcustomers.Inthepast,efforts
toimprovethebalancebetweencostsandmeetingcustomerdemandhaveinvolved
theseparateanalysisofeachsupplychaincomponent.Whathasbeenlackinginthis
analysis is the relationship between the components and how these relationships
contributetotheeffectsofchange.SimulationsoftwarethatincorporatesSCMtools
functiontodeterminetheinterdependencyofthesystemconstraintsthatminimizes
costs, maximizes profits, and meets customer demand. Secondly, supply chain
simulation allows analysis of the impact of uncertainty, such as the effects of
bottlenecksatdifferentpointsinthesupplychain.Thusthemaingoalofthesupply
chain simulation model is the formulation of a system capable of withstanding
variabilityandshiftsincustomerdemand.Bypredictingthereactionofthesupply
chaintooperationaldisturbances,businesseshaveincreasedcapabilityofmanaging
thedeliveryoffinishedproductstocustomers[1,2].Althoughinrelativeinfancy,the
couplingofsimulationandsupplychainmanagementposestobecomeanecessary
ingredientinthedesignsuiteofanybusiness.

Withtheensuingtransformationofbusinessesintoebusinesses,theimpactofthe
Internetwilldwarfthatofothertrendssuchasstrategicalliancesandglobalization.
Asbusinessesemphasizesupplychainmanagement,theconvergenceofthesupply
chainandtheInternetproducestheevaluechain,wheresuppliers,manufacturers,
shippers, distributors, and customers share realtime information regarding the
deliveryofproduct[3].TheInternetincreasesthenumberofalternativesinsupplying
rawmaterialstoproductionprocessestoshippingproductbyconnectingnetworksof
suppliers,shippers,anddistributors throughsharedinformationsuchas inventory,
customerdemand,andshippingtimes.Thisevaluechainismoredynamicinthe
sense that the best supply chain is the network of components that responds the
quickestandleastcostlywaytochangesincustomerdemand.

Theroleofsimulationinthisconvergenceshouldbeimportantintermsofthevarious
networksthatwillformwithinthesupplychain.Simulationwillplayanimportant
roleininvestigatingthedifferentevaluechainspossible.Inordertoplaythisrole,
new methods of analyzing simulation output and multiple alternatives will be
necessary. One emerging technique employs simulationoptimization in which the
supplychainismodeledusingsimulationsoftware,andalgorithmsareappliedtothe
modeltofindthebestalternativeamongmultiplealternatives.Themajordrawbacks
to this new technology are that relatively few businesses have the appropriate
resources orpersonnel to use this tool, anda significant amount oftime may be
necessaryforthesoftwaretofindthebestalternative[4].

Thedifficultyinmodelinghumanbehaviorrivalsthatofmodelingthesupplychain.
Despitethisdifficulttask,anotheremergingapplicationofsimulationinvolvesthe
ergonomics of the work environment. Software tools are available that determine
whetherornottheworkerwillphysicallyfitinthedesignedworkenvironment,and
analysisoftheworkoperationsmaybebrokendownintomotionandcycletimedata
[5].Addingthisapplicationtothatofmodelingthesupplychainpromisestoelevate
theimportanceofsimulationinrunningacompetitivebusiness.

VII.References[All]

Seereferencesforthefollowingteammembers:

AmarBalachandran
LeilaC.Rabuya
SagarShinde
 AniruddhaTakalkar

AmarBalachandranReferences

[1]Robeson,J.F.,andR.E.Howe(Eds.),TheLogisticsHandbook,FreePress,
1994.
[2]Copacino,WilliamC.,SupplyChainManagement:TheBasicsandBeyond,CRC
PressSt.LuciePress,1997.

[3]Bramel,Julien,TheLogicofLogistics:Theory,Algorithms,andApplicationsfor
LogisticsManagement,SpringerVerlang,1997.

[4]Bowers,D.,Daugherty,P.J.,andD.Bowersox,LogisticalExcellence,Digital
Press,1992.

[5]http://www.ask.com/main/

LeilaC.RabuyaReferences

[1] Wyland, B., Buxton, K., and B. Fuqua, "Simulating the Supply Chain," IIE
Solutions,January2000,3742.
[2]Avni,T.,"SimulationModelingPrimer,"IIESolutions,September1999,3841.

[3]Salcedo,S.andA.Grackin,"TheeValueChain,"SupplyChainManagement
Review,Winter2000,6370.

[4]Hicks,DonaldA.,"TheManager'sGuidetoSupplyChainandLogisticsProblem
Solving Tools and Techniques PART 1: Understanding the Techniques," IIE
Solutions,September1997,437.

[5]Andel,T.,"GetItRightBeforeIt'sReal,"MaterialHandlingEngineering,July
1999,5561.

[6]Chung,C.,LectureNotes,INDE3361:CAD/Simulation,UniversityofHouston.

[7]Sadowski,D.,Sadowski,R.,andD.Kelton,SimulationwithArena,McGrawHill,
1998.

[8]Banks,J.andR.Gibson,"Don'tSimulateWhen...10ReasonsforDetermining
WhenSimulationisNotAppropriate,"IIESolutions,September1997,302.

[9]Boyson,S.,Corsi,T.M.,Dresner,M.E.,andL.H.Harrington,Logisticsandthe
Extended Enterprise: Benchmarks and Best Practices for the Manufaacturing
Professional,JohnWiley&Sons,Inc.,NewYork,1999.

[10] Parsons, D. J., and A. J.Siprelle, "Integrating SupplyChain and Production

Models,"SimulationDynamics,Inc.,Maryville,TN:
http://www.simulationdynamics.com

SagarShindeReferences

[1]HiraandGupta,OperationsResearch,Dhanpatrai&Sons,1998,1999.
[2]Reitman,J.,"AConciseHistoryoftheUpsandDownsofSimulation."

[3]Mcleod,J.,IIEPublication.

[4]"Simulation:20thCenturyIssue,"SocietyofComputerSimulation.

[5]IIESolutionsGuide,Vol.1230,Ed.58.A214,1980,1981,1982,1983,1984,
1989,1999.

[6] Banks, J., Ed., Handbook of Simulation: Principles, Methodology, Advances,

Applications,andPractice,NewYork:WileyandEngineering&ManagementPress,
1998.

[7]Law,A.M.,andW.DavidKelton,SimulationModelingandAnalysis,NewYork:
McGrawHill,1991.

[8]Pegden,C.D.,Shannon,R.E.,andR. P.Sadowski,IntroductiontoSimulation
UsingSIMAN,NewYork:McGrawHill,1990.

[9] Browne, J., and K. Rathmill, Simulation in Manufacturing, IFS

Publications/SpringerVerlag,1998.

[10]Hurrion,R.D.,SimulationApplicationsinManufacturing,IFSPublicationsLtd.,
UK,1996.

[11]Roberts,N.,Deal,R.,Shaffer,W.,andM.Garet,IntroductiontoComputer
Simulation:SystemsDynamicsModelingApproach,ProductivityPressInc.,1999.

AniruddhaTakalkarReferences

[1]Banks,Jerry,Ed.,HandbookofSimulation:Principles,Methodology,Advances,
Applications,andPractice.
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