Abstract:

Nowadays, supply chain management (SCM) is an area of paramount importance given the globalization process that companies are experiencing. Traditionally, SCM is an area that has been studied in numerous degrees ranging from management to engineering. Essentially, the topic was divided in two important parts. On the one hand, different forecasting algorithms and methodologies are introduced to the students. For instance, exponential smoothing techniques associated to time series analysis, as well as, regression methods referring to causal methods are typically taught. On the other hand, stock control and replenishment policies are also studied. For example, either popular lot sizing techniques as the Economic Order Quantity or the family of order up to policies occupy many chapters in most of the Operations Management manuals. Nonetheless, it should be noted that, meanwhile both areas (forecasting and stock control) are individually analyzed; there is a lack of literature that explains how to connect both concepts. Note that such a connection is crucial to understand the overall supply chain performance starting from the clients’ orders up to the products supply.

The aim of this work is to use simulation models coming from the related research literature to enhance the students understanding of how a supply chain works and so, how the forecasting algorithms and the stock control models are linked. In order to illustrate the approach, different SIMULINK/MATLAB models based on systems theory are presented.

Keywords:

Simulation, supply chain management, forecasting, stock control.