Plenary Lecture

System Dynamics Models for Business Process Optimization: An Application to Supply Chain Management

Professor Roberto Revetria
University of Genoa
Reg. Ariano, 27
17031 Albenga SV,
ITALY

Email: revetria@itim.unige.it
Website: http://st.itim.unige.it

Abstract: In today's global market, managing the entire supply chain becomes a key factor for the successful business. World-class organizations now realize that non-integrated manufacturing processes, non-integrated distribution processes and poor relationships with suppliers and customers are inadequate for their success. They realize the impact of an organization's plan on the other areas of the supply chain. The impact of an organization's plan on the whole supply chain is unpredictable before its execution. That's why system dynamics models are constructed in order to prognosticate and visualize the behavior of of the system and to improve its performance.

The use of System Dynamics Modelling in Supply Chain Management has only recently re-emerged after a lengthy slack period. Current research on System Dynamics Modelling in supply chain management focuses on inventory decision and policy development, time compression, demand amplification, supply chain design, and international supply chain management.

Computer simulations are widely used to analyse supply chain dynamics. It is too complex to manage an entire inventory by mathematical analysis because more than two echelons are involved and the inventory management is usually carried out with the aid of computer simulation (Ballou, 1992).
Computer simulations can be divided into the static and dynamics models. The primary difference between them is the way in which they treat timerelated events. Static simulations do not pay enough attention to time-period interplay but the dynamic simulationsevaluate system performance across time (Bowersox, Closs, & Helferich, 1986).

Simulation permits the evaluation of operating performance prior to the execution of a plan. In the practical application of this concept, the development of the simulation model for the supply chain management has become a necessity.

There are different types of computer software for simulations like Dynamo, iThink/Stella, PowerSim, Vensim, AnyLogic, Berkely Madonna, etc. It is possible to perform good system dynamics work with all the above mentioned programs, however in our case we use Berkely MAdonna, developed by Robert Macey and George Oster of the University of California at Berkely under the sponsership of NSF and NIH.




Brief Biography of the Speaker:
He earned his degree in mechanical engineering at the University of Genoa and he completed his master thesis in Genoa Mass Transportation Company developing an automatic system integrating ANN (Artificial Neural Networks) and simulation with the ERP (Enterprise Resource Planning) for supporting purchasing activities. He had consulting experience in modeling applied to environmental management for the new Bosch plant facility TDI Common Rail Technology in construction near Bari. During his service in the Navy as officer, he was involved in the development of WSS&S (Weapon System Simulation & Service) Project. He completed is PhD in Mechanical Engineering in 2001 defending his Doctoral thesis on “Advances in Industrial Plant Management” by applying Artificial iontelligence and Distributed Simulation to several Industrial Cases. Since 1998 is active in Distributed Simulation by moving US DoD HLA (High Level Architecture) Paradigm from Military to Industrial application. In 2000 he succesfully led a research group first demonstrating practical application of HLA in not dedicated network involving a 8 International University Group. He is currently involved, as reseacher, in the DIP of Genoa University, working on advanced modeling projects for Simulation/ERP integration and DSS/maintenance planning applied to industrial case studies (Contracting & Engineering and Retail companies). He is active in developing projects involving simulation with special attention to Distributed Discrete Event and Agent Based Continuous Simulation (SwarmSimulation Agents). He is teaching Modelling & Simulation, VV&A, Distributed Simulation (HLA), Projecty management in Master Courses Worldwide and he is teaching Industrial Plants Design in University of Genoa Masters' Courses. He is member of SCS, IASTED, ACM, ANIMP, AICE, MIMOS and Liophant Simulation Club. He is Associated Professor in Mechanical Engineering and Logistics.