Stuart Dean
ABSTRACT
The Logistics and Budgeting Simulator (LBS)model is a generalized procedure used to simulate the material flow and cost behavior of a complex, process type manufacturing and distribution system. This model is used for corporate planning studies and for evaluating budget alternatives.
The model, representing the W.R. Grace and Co. fertilizer system, is structured as a network consisting of nodes and streams. Nodes represent production sites inventory locations or geographical groupings of both. Streams represent material movement between nodes. Material flows within the network are determined in a logical “top-to-bottom” sequence from the network output to the network input streams. Costing is then performed by a reciprocal “bottom-to-top” procedure.
The model operates in a conversational mode using a time-shared computer system. The model is “open-ended” to provide the user the means to quickly modify the network structure and/or input parameters, thereby enabling top management to actively participate in the use of the system.
Index Terms
- Simulation model for a complex production/distribution network
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