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Abstract

We have developed a linear programming formulation to describe Qatar steel manufacturing supply chain from suppliers to consumers. The purpose of the model is to provide answers regarding the optimal amount of raw materials to be requested from suppliers, the optimal amount of finished products to be delivered to each customer and the optimal inventory level of raw materials. The model is validated and solved using GAMS software. Sensitivity analysis on the proposed model is conducted in order to draw useful conclusions regarding the factors that play the most important role in the efficiency of the supply chain. In the second part of the project, we have set a simulation model to produce a specific set of Key Performance Indicators (KPIs). KPIs are developed to characterize the supply chain performance in terms of responsiveness, efficiency, and productivity/utilization. The model is programmed using WITNESS simulation software. The developed QS WITNESS simulation model aims to assess and validate the current status of the supply chain performance in terms of a set of KPIs, taking into consideration the key deterministic and stochastic factors, from suppliers and production plant processes, to distributors and consumers. Finally, a simulated annealing algorithm has been developed that will be used to set model variables to achieve a multi-criteria tradeoff of the defined supply chain KPIs.

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/content/papers/10.5339/qfarf.2013.ICTP-058
2013-11-20
2019-09-20
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http://instance.metastore.ingenta.com/content/papers/10.5339/qfarf.2013.ICTP-058
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