DISCRETE EVENT SIMULATION APPLIED TO MODELLING AND ANALYSIS OF A SUPPLY CHAIN A. G. Bruzzone, S. Viazzo MISS - DIPEM University of Genoa Via Opera Pia 15 - 16145 Genova, Italy {agostino,viazzo}@itim.unige.it URL st.itim.unige.it F. Longo, G. Mirabelli, E. Papoff University of Calabria Via Pietro Bucci, Cube 46C, 87036 Arcavacata di Rende, Italy {f.longo, g.mirabelli, e.papoff}@unical.it URL http://www.unical.it C. Briano, M. Massei Liophant Simulation Via Molinero 1, 17100 Savona Italy {chiara.briano, marina.massei}@liophant.org URL www.liophant.org Keywords: Logistic platform, discrete event simulation, Design of Experiment, Analysis of Variance, business retail. Abstract The present work focuses on the application of discrete event simulation for the modelling and study of a logistic platform devoted to support retail business, located on the Ligurian coast. In particular – after accurate computerized modelling of the logistic chain, which is made up of a distribution centre, 7 suppliers and 10 customers – we focussed on the evaluation of the effect of two factors (trucks downtime at the distribution station and security factor on the estimated delivery time) on the mean service level provided to customers. To this purpose, we used both Design of Experiment (DOE) for experiments planning and the Analysis of Variance (ANOVA) to study the output of statistical data from the simulation model. Introduction It is perfectly clear that one of the priorities of a distribution system's management is the complete fulfilment of customers' need. The capability of supplying the right product at the right time, to comply with delivery schedules and to respect required conditions at very low costs, is one of the fundamental prerequisites of a distribution system. The value added to the product, deriving from optimal logistics, increases customers' satisfaction, thereby guaranteeing better competitiveness and business survival in increasingly competitive markets. There are many examples in which inadequate supplies and communications caused the decrease of business market shares associated to revenues reduction and lower quality of services to customers. Among the various tools at present available for planning, analysing and managing logistics and distribution systems, simulation plays a critical role. Logistics simulation models are used for planning and analysing the supplies and communications chain and to test - by means of computers - different possible scenarios such as changes in transportation modes (by rail, ship etc. or multipick and multidrop strategies), supply management policies as well as products demand fluctuations. The present work focuses on the application of discrete event simulation for the modelling and analysis of a supply chain, organized to guarantee support to retail business. The logistic platform - located on the Ligurian coast - is made up of 10 customers, a distribution station and 7 suppliers. Connections among the various nodes are ensured by road haulage. Figure 1 shows the flow of orders and products among customers, distribution station and suppliers. Logistic chain modelling We selected a hierarchical approach used in the modelling phase in order to plan both the operation of .....