On the application of discrete-event simulation in production

Abstract

The current fierce competition within the manufacturing industry throughout the world is a result of globalization and dynamic changes in the market. This new era within the production world requires shorter lead times, integrated logistics, capabilities regarding handling changes in product volumes and variety, as well as conformity to environmental rules and regulations legislated by governments and organizations. Apparently, the multitude of variables needed to solve problems complicates the decision-making process. In order to provide solutions for complex problem solving within production development which include many variables and a certain amount of uncertainty there is a need for robust decision making tools. Discrete-event simulation (DES) is one of the virtual tools that can be used as a support for decision-making for production related problems. The current paper addresses challenges which cause low utilization of DES in industry along with a framework for handling those challenges and performing DES projects in an effective and efficient way.