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ThinkMind // SIMUL 2011, The Third International Conference on Advances in System Simulation // View article simul_2011_8_30_50145
Applying Simulation and Mathematical Programming on a Business Case Analysis for Setting up a Spare Part Logistics in the Construction Supply Industry
 Authors:
Wilhelm Dangelmaier
Christoph Laroque
Robin Delius
Jenny Streichhan Keywords: spare parts logistics, Monte Carlo simulation, Steiner Weber iteration, mixed-integer programming, Uncapacitated Facility Location Problem, sensitivity analyses Abstract:
This paper describes how methods and techniques from different fields of research can be combined to evaluate cost-intensive and business-critical decisions regarding future market development. In their concrete application a leading company from the construction supply industry has to make a decision on setting up of a spare part logistic. Three future alternatives (negative, constant, positive market growth) on market trends are simulated with a Monte Carlo simulation by considering a given demand history and possible locations for storage facilities were isolated by applying the Steiner-Weber method. Finally solving a mixed-integer formulation of the Uncapacitated-Facility-Location-Problem gives information on opening/closing new/existing storage facilities by minimizing all relevant costs. The results of this approach, containing information about a cost-based evaluation of all business related decision criteria, were examined with a sensitivity analysis. Pages: 154 to 160 Copyright: Copyright (c) IARIA, 2011 Publication date: October 23, 2011 Published in: conference ISSN: 2308-4537 ISBN: 978-1-61208-169-4 Location: Barcelona, Spain Dates: from October 23, 2011 to October 29, 2011
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