Home // SIMUL 2011, The Third International Conference on Advances in System Simulation // View article
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