Research On Logistics System And Inventory Policy Simulation Of Milk Product In Sanlu

The milk competition in our country is furious. Although the milk market continuously extends, only less than one quarter enterprises have benefits. Since 2005, along with the increasing cost of milk, animal food, packing material and lactose, the milk enterprises are faced with more and more pressure. Now, the main enterprises use price as a competing means. So in order to take advantage in the price competition, we must take efforts to decrease the total cost and improve the service level. Logistics is considered as"the third source of profit"and a very important element of decreasing operational cost. So it's meaningful to analyse the cost factors in milk logistics.Based on a literature review relating to milk logistics system and system simulation, we discussed the significance of our research. Then we present the related theories. In chapter 3, we analysed the interior and exterior environment of Sanlu Company. Moreover we payed much attention to the cost of Sanlu's milk logistics, and by using the method of add-value chain analysis, we found out non-value added activities and put forward some optimization. In our reseach, we found that inventory is a most important cost factor in milk logistics. So, in chapter 4, we build the inventory model of milk by Arena, and analyzed the results of the model. Then we designed a new inventory policy, build its Arena model, and search for the optimation combination of (s, S) using OptQuest. Through the comparation of the two kinds of inventory policy, we got a conclution that applying (s, S) inventory policy can obviously reduce the inventory cost of milk based on 90% of service level.The contributions of this dissertation are summarized as follows:First of all, according to the lacking of simulation research on the milk, we put forward an application to simulation the milk logistics by Arena.Secondly, OptQuest is a optimize sofeware, it can move around intelligently in the input-control space and try to converge quickly and reliably to an optimal point. In this dissertation we use OptQuest to search to optimal (s, S) combination. Thirdly, in this dissertation, we applyed the add-value method to the milk logistics system, analysised the existing non-value added activities.