journal article·2019-12-26Open access

A System Dynamics Model to Evaluate the Impact of Production Process Disruption on Order Shipping

Cuauhtémoc Sánchez-Ramírez, Rocío Ramos-Hernández, José Roberto Mendoza Fong, Giner Alor-Hernández, Jorge Luis García-Alcaraz

Applied Sciences· Volume 10· Issue 1

Abstract

Multiple studies have analyzed the importance of preventive maintenance. Similarly, they have developed and/or evaluated various spare part inventory management policies that help companies reduce the duration of production disruptions resulting from sudden mechanical failures. All of these studies assess the impact of mechanical failures on local aspects, such as idle times or management policies. However, they do not holistically evaluate how machine failures affect key performance indicators. To address this gap, we proposed a System Dynamics (SD) model to systemically analyze the impact of machine part failures on order shipping, a key performance indicator. Similarly, we assessed the impact of machine part failures on the levels of the company’s finished goods inventory. The research was conducted in a glass bottle manufacturing company. To increase order shipping as a performance indicator, we identified the key variables of the production process and conducted a sensitivity analysis of the variables. Our results indicate that it is possible to reach the company’s 98–100% complete delivery policy.
Source: crossref · Quality: baseline

Research context

OpenAlex topics: Supply Chain Resilience and Risk Management · Quality and Supply Management · Supply Chain and Inventory Management

SciVX discovery tags are terminology-based. OpenAlex topics are source-provided classifications.

Affiliations

Division of Research and Postgraduate Studies, Tecnológico Nacional de México/Instituto Tecnológico de Orizaba, Orizaba 94320, Mexico

Department of Electric and Computer Sciences, Autonomous University of Ciudad Juárez, Ciudad Juárez 32310, Mexico

Funding

Consejo Nacional de Ciencia y Tecnología

References (40)

Show source-provided references
1. System Dynamics Modeling of backup purchasing strategies under supply disruptions risks
2. A model to define and asses the agility of supply chains: Building on hummanitarian experience10.1108/09600031011079355 ↗
3. The agile capabilities of polish companies in the supply chain: An empirical study10.1016/j.ijpe.2008.08.019 ↗
4. Managing risk of supply disruptions: Incentives for capacity restoration10.1111/j.1937-5956.2012.01342.x ↗
5. Cárdenas-Barrón, L.E., Akbar Shaikh, A., Tiwari, S., and Treviño-Garza, G. (2018). An EOQ inventory model with nonlinear stock dependent holding cost, nonlinear stock dependent demand and trade credit. Comput. Ind. Eng., in press.
6. Mehdizadeh, M. (2019). Integrating ABC analysis and rough set theory to control the inventories of distributor in the supply chain of auto spare parts. Comput. Ind. Eng., in press.10.1016/j.cie.2019.01.047 ↗
7. On the Optimality of Inventory and Shipment Decisions in a Joint Three Echelon Inventory Model with Finite Production Rate under Stock Dependent Demand10.1016/j.promfg.2019.02.069 ↗
8. Survey on Inventory Model of EOQ & EPQ with Partial Backorder Problems10.1016/j.matpr.2019.05.138 ↗
9. Complex interdependent supply chain networks: Cascading failure and robustnees10.1016/j.physa.2015.09.082 ↗
10. On returns and network configuration in supply chain dynamics10.1016/j.tre.2014.11.008 ↗
11. Zhu, S., Jaarsveld, W., and Dekker, R. (2019). Spare Parts Inventory Control based on Maintenance Planning. Reliab. Eng. Syst. Saf., in press.10.1016/j.ress.2019.106600 ↗
12. Joint optimization of spare parts inventory and service engineers staffing with full backlogging10.1016/j.ijpe.2019.02.007 ↗
13. The value of maintenance delay flexibility for improved spare parts inventory management10.1016/j.ejor.2019.04.023 ↗
14. Spare parts inventory management: New evidence from distribution fitting10.1016/j.ejor.2017.09.039 ↗
15. Umeda, S., and Lee, Y.T. (2004, January 5–8). Design specifications of a generic supply chain simulator. Proceedings of the Winter Simulation Conference, Washington, DC, USA.
16. System dynamics—A personal view of the first fyfty years10.1002/sdr.382 ↗
17. Implications of the Tohoku earthquake for Toyota’s coordination mechanism: Supply chain disruption of automotive semiconductors10.1016/j.ijpe.2014.07.010 ↗
18. A Simulation study of sea transport based fertilizer product considering disruptive supply and congestion problems10.1016/j.ajsl.2018.08.001 ↗
19. Agent-based modelling and heuristic approach for solving complex OEM flow-shop productions under customer disruptions10.1016/j.cie.2019.04.054 ↗
20. Disruption tails and revival policies: A simulation analysis of supply chain design and production-ordering systems in the recovery and post-disruption periods10.1016/j.cie.2018.10.043 ↗
21. Dynamic strategies for supply disruptions in production-inventory systems10.1016/j.ijpe.2017.04.003 ↗
22. An updated assessment of oil market disruption risks10.1016/j.enpol.2017.12.013 ↗
23. System-oriented inventory models for spare parts
24. Forward management of spare parts stock shortages via causal reasoning using reinforcement learning10.1016/j.ifacol.2015.06.224 ↗
25. Optimization of maintenance and spare provisioning policy using simulation10.1016/S0307-904X(00)00011-1 ↗
26. Sourcing assemble-to-order inventories under supplier risk uncertainty10.1016/j.omega.2015.06.011 ↗
27. A disruption recovery model for a single stage production-inventory system10.1016/j.ejor.2012.05.033 ↗
28. Joint optimization of preventive maintenance and spare parts inventory for an optimal production plan with consideration of CO2 emission10.1016/j.ress.2016.01.006 ↗
29. Tomlin, B.T. (2009). On the Value of a Threat Advisory System for Managing Supply Chain Disruptions. [Ph.D. Thesis, University of North Carolina at Chapel Hill].
30. On the value of mix flexibility and dual sourcing in unreliable newsvendor networks10.1287/msom.1040.0063 ↗
31. Modelling rural healthcare supply chain in India using system dynamics10.1016/j.proeng.2014.12.464 ↗
32. Long-term impact of environmental regulations and eco-conscious customers in the chemical industry: A system dynamics approach to analyze the effect of multiple disruptions10.1016/j.jclepro.2019.04.102 ↗
33. Song, M., Cui, X., and Wang, S. (2018). Simulation of land green supply chain based on system dynamics and policy optimization. Int. J. Prod. Econ., in press.10.1016/j.ijpe.2018.08.021 ↗
34. Evaluation of the impact of water supply disruptions in bioethanol production10.1016/j.cie.2018.11.041 ↗
35. Application of agent based modelling to aircraft maintenance manning and sortie generation10.1016/j.simpat.2011.09.001 ↗
36. Estimating the effect of module failures on the gross generation of a photovoltaic system using agent-based modeling10.1016/j.rser.2018.04.054 ↗
37. The design and simulation of an autonomous system for aircraft maintenance scheduling10.1016/j.cie.2019.106041 ↗
38. A novel approach for modelling complex maintenance systems using discrete event simulation10.1016/j.ress.2016.06.003 ↗
39. Managing Inventory in Global Supply Chains Facing Port-of-Entry Disruption Risks
40. On the value of mitigation and contingency strategies for managing supply chain disruptions risk10.1287/mnsc.1060.0515 ↗