Creating a simulation model to assess the initiatives of internal logistics optimization. Using the simulation to compare the internal logistic network design options for EVRAZ, one of top-3 metallurgical holdings in Russia.
Period: May 2015 – October 2015
Industry: Mining
Client / Partner: EVRAZ / BearingPoint
Project objective
Assess the initiatives of internal logistics optimization
The main stages of work and characteristics of the model
- The simulation model concept development
- Development and testing of a simulation model on the AnyLogic 6 platform
- Taking part in preparing the data for modeling
- Verification of the model on historical data
- Scenario analysis using the simulation model
- Support consultants’ team on scenario analysis and results interpretation phase
Model input data
- Logistic categories of materials and their dimension and weight measurements
- Historical data of internal cargo flows by materials, storage locations, workshops and equipment
- Technical characteristics of transport (average speed of transportation, capacity, current number of vehicles in fleet, etc.)
- Loading and unloading performance by logistic categories, storage locations and recipients (workshops and equipment)
The main structural elements of the model
- 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
Model output data
- Total costs within the period of modeling
- Weighted average delivery price of materials
- Service level of supply
- Transportation and loading resources time utilization
- Logistic resources utilization
- Volume of materials stored in central warehouse
- Average inventory cost
Project result
- Allocation of storage capacities and materials transportation options between workshops were suggested
- Internal logistics optimization suggestions were evaluated
- The effect of central warehouses consolidation and transition to fully centralized distribution of materials was calculated