Posted: November 5th, 2015

SYSTEM MODELLING AND SIMULATION

SYSTEM MODELLING AND SIMULATION
Summative Assignment 1: System Modelling and Simulation

This task will give you
some experience in attempting to manage within a complex system and its corresponding environment. The complex system we’ll study is a
hypothetical multi-facility multi-site supply chain for the manufacture, distribution, and retailing of popular darkly-colored
non-alcoholic carbonated beverage. Yes that’s right, it’s root beer!
The supply chain consists of the following four facility types.

Except for the syrup factory,there are multiple instances of each facility type each independently located on its own site.

1.The factor where the flavouring syrup for the root beer is produced.
2. The three distribution centres which use the syrup to produce and bottle the
root beer beverage.
3. The ten wholesale sites which sell the root beer on a wholesale basis to the retail outlets.
4. The thousands of
retail outlets which sell the root beer to the general public (the consumers).
The supply chain in this company for the production,
distribution, and selling of this product is a complex system and so needs to be managed accordingly. In the online simulation you will be
the manager in charge of inventory and ordering for the retail sales operations. That means you will need to manage orders of root beer
bottles to meet demand from your retail consumers while cost-effectively maintaining an acceptable number of bottles stocked as inventory
across the entire supply chain since your operations “pull”the product supply through the entire process. The other manager roles
(factory, distribution, and wholesaling) will be auto-played by the computer simulation in this single-player version.
The computer-based simulation model attempts to virtually represent the actual supply chain for the company and so it attempts to represent the non-linear
complexity of the supply chain including the delays encountered between orders being placed from anywhere “downstream” in the supply
chain (to the nearest facility preceding it “upstream”). You need to consider these ordering delays since your primary goal is to
minimize the costs for the company according to two primary cost factors: each bottle costs $0.50 per week to be stocked in the warehouses
and if you cannot fulfill the retail operations order then each bottle on back order (backlog) costs $1 per week. In the simulation each round
represents one week and so the simulation advances by one virtual week each time you place an order from distribution operations. Just like
in real life, you cannot go backwards in time, so the system’s current state is a function of its respective previous states and the
corresponding previous changes in inputs or stimuli.
What You Need to Do:
Remember to undertake this assignment in the following task
1. Research,
2. Perform, and
3. Report

1. Research the relevant theory before attempting to use the online simulation model. Since
you are going to perform the simulation for one run only (which will end after a number of  pre-determined virtual weeks) then it is
important to be methodical in how you undertake this assignment.
Systems Theory – as we have studied in the Systems Concepts learning
module this trimester
Supply Chain Management – conduct your own independent research to obtain basic background knowledge about what
supply chains are and the typical issues encountered in managing them.
-The “bullwhip effect” in supply chains such as the one being
modelled here – conduct your own independent research on this phenomenon that you are likely to observe and need to cope with during the
simulation.

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2. Perform the online simulation for one entire run (of multiple
virtual-week rounds). Make sure to observe and analyse the state of the system between rounds – use the tabbed options provided on the
simulation’s Dashboard for this.
3. Report your observations, performance, analysis, and reflections. Prepare and submit a written report
for assessment. This report should be at least 1000 words. The framework of your report is for you to determine but it we expect it to
include the following content:
~A summary of the background theory relevant to this assignment.
-A brief description of the process
being modelled here and of the simulation model used.
-A discussion and explanation of what behaviours and phenomena you observe across
the system during the simulation.
~A summary of the performance you achieved managing the retailing facilities.
A self-reflection
on your performance. Assess how well you coped with managing your assigned part of the supply chain,what mistakes you made, and how you
could improve your performance.
-A References or Bibliography section to list the major sources of information used to prepare your
re port.

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