Supply Chain Simulation to Test Theory of Constraints Implementation for Cargil

Development of edible oils supply chain simulation model for Cargill. The model embraced sourcing, production, components and finished goods inventory managements as well as distribution of edible oils across North America. The model was used to optimize production batching policies and to test and verify inventory management algorithms. The simulation has interactive visualization of inventory and production dynamics that allowed users to faster analyze the complex interdependencies of the supply chain.
Period: August 2017 – February 2018
Industry sector: Agriculture
Client / Partner: Cargill / Goldratt Research Labs

Project objective
  • Development of the edible oils supply chain simulation model. The model embraced sourcing, production, components and finished goods inventory managements as well as distribution of edible oils across North America.
  • Optimization of production batching policies and inventory management algorithms

Our scope of work

  • Taking part in setting up a modeling problem
  • Development and verification of a simulation model using our supply chain simulation platform
  • Technical and methodological support of scenario analysis using the model

Simulation model inputs

  • Information about materials (materials group, production costs, sales costs, etc.)
  • Information about customers and suppliers (geographical location, fixed and variable costs, etc.)
  • Information about production facilities
  • Costs of production, packing and delivery of materials
  • Forecast of demand for materials

Simulation model structure elements

  • Input data file of scenario in MS Excel format
  • Simulation model with interactive presentation
  • Data aggregation module that allows to generate MS Excel files with the simulation results

Simulation model outputs

  • Service level of supply in percentage terms
  • Stock movement of raw materials and finished products
  • Report about financial indicators of the system

Project result

  • Simulation-based tool for comparison of production batching policies, testing and verifying inventory management algorithms

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