A predictive simulation model provided insight into a range of scenarios for our client’s supply chain and guided investment decisions.
Our client sources raw materials in bulk from a single remote location. The raw materials are transported by sea to various locations further up the supply chain for processing. The supply chain is extensive, covering large distances across Asia. Various nodes in the chain are at remote locations, presenting a number of challenges.
Insight needed to guide investment decision for new processing facility
Our client wanted to develop an additional processing facility for the raw material and asked Royal HaskoningDHV Supply Chain & Operations team to make a number of calculations to help guide the investment decision. These included the unloading capacity required in various scenarios as well as lead times and throughputs. The calculations took into account detailed operational restrictions and downtime due to planned and unplanned maintenance, weather influences and tidal windows, including the influence of direct shiploading and floating transhipment. We were also asked to validate and test insourced and outsourced operations and to balance inventory levels at various locations. Finally, our client wanted us to determine the optimum size of the fleet.
By developing a clear and concise predictive simulation model, we were able to predict the type and number of vessels needed to successfully meet supply and demand. We concluded that some outsourced operations in the supply chain could not meet future throughputs and that further investment in infrastructure would be required.
The output of the model gave clear insight into the performance of the various scenarios which guided investment decisions for the inhouse processing location. We were also able to help balance inventory levels at multiple locations.