Evaluation of the sustainable supply chain of automotive agencies using discrete event simulation optimization: a case study of Iran Khodro Automotive Group.
Banafshe Famouri
1
(
Ph.D. candidate Department of in Industrial Management, Science and Research Unit, Islamic Azad University, Tehran, Iran
)
Seyed Javad Iranban Fard
2
(
Associate Professor, Department of Industrial Management, Shiraz Branch, Islamic Azad University, Shiraz, Iranc Azad University, Shiraz, Iran
)
Seyyed Mohammad Seyyed Hosseini
3
(
Professor, Department of Industrial Engineering-Industrial Production, Faculty of Industrial Engineering, University of Science and Technology, Tehran, Iran
)
Nazanin Pilehvari
4
(
Professor, Department of Industrial Management, West Tehran Branch, Islamic Azad University, Tehran, Iran
)
Keywords: sustainability, simulation, optimization, automobile manufacturing, supply chain,
Abstract :
Abstract
In this research, a pattern for modeling the sustainable supply chain of the automotive products group by using the hybrid model of discrete event-based simulation is presented .For this purpose, first, the simulation model of the current state of the supply chain has been developed using AnyLogic simulation software, and the necessary processes were carried out to confirm the validation of the model.After validitation of the hybrid simulation model,in the first step, the economic aspects of the supply chain were evaluated. In this regard, the supply chain was examined from two perspectives: the number of transportation fleets and the levels of ordering and maintenance of spare parts inventory.In order to optimize the result of the objective function, the meta-heuristic method opt Quest was used to minimize the cost of waiting for customers to receive products, the waiting cost of agents to receive spare parts, and costs related to maintenance and repairs and depreciation of Vehicles were calculated.The output of the optimization process showed that with a 19-digit increase in the number of fleets compared to the current situation, the waiting time of Samand Group customers will decrease by 4%, Dena Group by 1.1%, and Peugeot Group by 8.9%.Also, the number of production of Peugeot products has increased to 33 thousand units per year, and there has been no significant change in the production of products of other groups.The establishment of the optimal situation, in addition to the economic benefits for the chain, has led to improvements in social and environmental dimensions as well.
Key Words: sustainability, simulation, optimization, automobile manufacturing, supply chain
1 - Introduction
Today, the issue of supply chain and its role in creating and developing competitive advantage, reducing costs, increasing productivity and motivating employees is considered one of the important strategic issues of any business. In this regard, various supply chain paradigms such as green, lean, agile, large, resilient, etc. have been proposed over time and organizations use one or a combination of these paradigms based on strategic conditions and priorities.
The sustainable supply chain, which is the result of combining and balancing economic, environmental and social aspects, has received a lot of attention in recent years. Sustainable supply chain management is a competitive advantage for companies and increases efficiency and reduces costs. Vasei et al. (2023), noted that sustainable development in supply chain management is not only a limiting factor but also an approach to improve performance and has an effect on the company's competitive power and its supply chain organization; Therefore, identifying and introducing new paradigms in the supply chain is among the needs of companies to stay in today's competitive market, which are very related to human factors. All the mentioned cases make it inevitable to design a comprehensive and effective model for the supply chain.
2- Literature Review
Abir et al. (2020), in a problem of designing a sustainable closed-loop supply chain network, sought to minimize total costs, reduce carbon dioxide emissions, and maximize sustainability by providing as much customer demand as possible. They considered the stability only at the level of the warehouse and for the demand uncertainty. Ahranjani et al. (2020), by presenting a mixed integer linear programming model, designed and planned bioethanol supply chain networks with several raw materials. In order to create flexibility against existing uncertainties and the risks of disruption in the supply chain, they used a stochastic combination planning approach. Fazli Khalaf et al. (2020) considered sustainability in the design of a hydrogen supply chain network with three levels of producer, warehouse and customer. In order to deal with the combined uncertainty included in the model, they presented a mixed flexible possibility planning method, and conducted a case study to implement and analyze the results of the proposed model.
3- Methodology
In this research, a framework for investigating the sustainability in the supply chain of Iran Khodro Company using the hybrid simulation approach of discrete event based factors is presented. For this purpose, the factors identified in the supply chain and the behavior of each of them have been considered with the aim of designing a sustainable supply chain and creating a balance in economic, social and environmental components. In order to simulate the model, AnyLogic software is used and in order to optimize, opt Quest meta-heuristic method is used in each execution of the simulation model. In this algorithm, it is tried to take values for the decision variable in each iteration to ultimately lead to the optimization of the objective function. Therefore, the objective functions and constraints are defined according to the following equations in opt Quest software to perform the optimization.
4- Result
The output of the optimization process showed that with a 19-digit increase in the number of fleets compared to the current situation, the waiting time of Samand Group customers will decrease by 4%, Dana Group by 1.1%, and Peugeot Group by 8.9%. Also, the number of production of Peugeot products has increased by 33 thousand units per year, and there has been no significant change in the production of products of other groups. The 19-digit increase in the number of fleets led to an increase in the mileage of about 860,000 kilometers, and the traffic of vehicles for parts that need to be reworked due to quality problems also showed an increase of 5,750 kilometers. The increase in the fleet navigation shows that the parts produced by the suppliers and also the parts that need to be reworked in the simulation model of the current situation are waiting due to the lack of fleet. In terms of extracting the optimal/near-optimal point of ordering levels and the level of inventory maintenance, the objective function of minimizing the cost of maintaining parts and the cost of waiting for representatives to receive parts was considered. It was found that the optimal close points extracted with the connection of the simulation model and meta-heuristic methods reduce the amount of inventory in Isacco's warehouse by 50%, which will be a significant number to reduce the costs of the supply chain. This inventory reduction, if the number of the fleet increases to 223, will still provide the situation of sending parts from the warehouse on the same working day.
- Discussion
In previous researches, the combined approach of simulation and optimization has not been used in the design of supply chain models. For this purpose, by using the mixed simulation approach of the discrete-based event, the supply chain was modeled and the aspects of sustainability were optimized. Another important point is that in previous researches, the economic aspect of the issue has been given more attention and less attention has been paid to the environmental dimensions and social effects of the issue. In this research, the simultaneous effect of economic, environmental and social factors on supply chain performance was measured.
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