Supply Chain Optimization of a Local Small Business from the Food-Service Industry Using Simulation Models
Abstract
Various supply chain disruptions can cause revenue losses, low productivity, and damaged reputations. Some examples of such disruptions include increased supply costs, labor shortages, pandemics, natural disasters, or transportation delays. For instance, during the COVID-19 pandemic, several small and medium enterprises (SMEs) suffered greatly from labor shortages, delayed and costly supplies, and decreased demand. In this research, we present a case study of a small local business from the fast-food industry that experienced the loss of employees and delays and analyzed the increased cost of supplies. We created visualization modules with the SMEs supply chain performance measures to see the effects of switching suppliers and adjusting shift schedules using simulation models. We used data gathered from the SME’s point of sale system and developed a simulation model to replicate the SME’s supply chain network. The model used information about various suppliers, their location, lead time, transportation costs, operational costs, inventory level, and customer location. The simulation model explored the impact of supplier disruption on the SME’s key performance indicators (KPI). We developed scenarios and experiments to evaluate the outputs (i.e., KPIs) and provided recommendations to improve the SME’s supply chain network.
Subject Area
Industrial engineering
Recommended Citation
Montalvo, Aimee, "Supply Chain Optimization of a Local Small Business from the Food-Service Industry Using Simulation Models" (2021). ETD Collection for University of Texas, El Paso. AAI28869926.
https://scholarworks.utep.edu/dissertations/AAI28869926