Simulation Modeling of Information Flow in a 3-stage efficient Supply Chain Network

This paper is the result of the work carried out to simulate information flow in a 3 stage efficient supply chain network. In a supply chain system, an individual member exchanges data with other members to synchronize their business operation, which is a complex process. The problem faced by traditional supply chain is lack of accurate and timely information flow across various stages, which leads to accumulation of inventory resulting in reduced efficiency and effectiveness. The solution to this problem is to reduce the barrier across the output of one stage to the input of succeeding stage by adopting information technology as a tool. Keeping this in mind, the data was collected which included both qualitative data and quantitative data. Qualitative data is related to the processes taking place at various stages of the supply chain with reference to information flow. Quantitative data pertains to annual demand, average information flow processing times of all the processes in the supplier’s facility and in the assembly line, demand patterns and sales forecasts at each echelon. The simulation modeling is used as tool to model the supply chain system. ARENA simulation package is used to model the system. The data is obtained from automobile manufacturing company and the models are verified and validated with real time data. Traditional process timings is compared with EDI timings at every stage of supply chain and found % decrease in the information flow timings. The output is tested statistically by running the models under number of replications