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: 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
The main stages of work and characteristics of the model
- 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
Model input data
- 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
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
- 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