Simio invites you to participate in our biannual simulation contest. This is open to both graduate and undergraduate student teams. In addition to the fame and glory as well as "bragging rights" and exposing your work to potential employers there will be cash prizes totaling $5500, twice a year, for the top 4 teams!
Below is a summary of the May 2021 problem (January through May 2021) that focuses on Demand Driven Materials Requirement Planning:
The Simio Shelving Shop is a shelving manufacturer and wholesaler specializing in several types of shelving units with design variations. The shop is currently experiencing low order fill rates, affecting the shop’s bottom line. Management recently hired an outside consultant to provide recommendations for revamping the inventory and buffering system. The consultant recommended a new buffering and inventory paradigm, Demand Driven Materials Requirement Planning (DDMRP), to address the rampant stockout issue.
The factory currently uses static buffer levels, where all stations have a fixed amount of raw material buffered at their station, and the factory maintains a fixed number of each end item ready to ship. The current buffering method, combined with variations in lead time and quality throughout the factory and its suppliers, drives stockouts of finished goods and raw material. Management embraced the consultant’s recommendation to incorporate a DDMRP buffering solution into the factory because they are convinced that a dynamic buffering solution will improve a collection of selected Key Performance Indicators (KPIs), especially fill rate and average inventory cost. As a secondary objective, management also seeks better methods of monitoring risk in the buffer levels, which the DDMRP buffer profiles will provide.
The challenge is to set up dynamic DDMRP buffers in the factory. This will include leveraging pre-existing data from Sales, Quality, machines, and suppliers to first determine the locations of the buffers, then fine-tune the buffer parameters to improve the selected KPIs. After the buffers are integrated, management wants to predict the change in the factory’s KPIs. Additionally, management would like to reevaluate potential suppliers, which have varying lead times and product quality. This assessment will include recreating optimal buffers for the potential suppliers to determine the impact the supplier could have on the company’s fill rate and average inventory costs.
Students: If your instructor is assigning this as a required class project, ask your instructor how you register. If you are doing this as an ad-hoc project or optional assignment, register for the contest, visit here. Consult the Contest Rules and Guidelines for additional important information and helpful success tips.
Judging will be done by an independent panel of judges drawn internationally from both academic and commercial simulation practitioners. Judging is based on a 10-item scoring system where each item is worth between 0.0 and 3.0 points. For more detail see the Contest Judging Criteria.