Application Of Simulation In Logistics Management

Logistics is one of advanced organization modes and management technologies, which is extensively regarded as another important source of profits of an enterprise, besides reducing material consumption and improving productivity of labor. With the increasingly perfect of the modern information technique, people attach more and more importance to the design of logistics management and research of simulation. Actually simulation is not only a kind of experiment method, but also an important optimizing method in operational research and systems engineering. Its basic thought is to try to re-appear the circumstance of some system, but not necessarily to construct and run the system. In other words, it is not to seek the solution of the models, but to run the model under the various combinations. According to the results, people can evaluate the advantages and disadvantages of the schemes.The paper consists of introduction, four chapters and conclusion. Chapter one starts from the signification of modern logistics. Compared with traditional logistics, the scope of modern logistics is wider. Section two introduces the basic concept of simulation, analyzes its main function and application prospects. Because of further study on the logistics theories and practice, the research problems and causality are more and more complicated; we can't solve them by mathematics but rely on the computer simulation.Chapter two focuses on the simulation of inventory control. As for stochastic inventory system, there are many stochastic variables, for example demand, lead-time, reorder and order quantity. Only simulation can make further study on the system. This chapter presents two methods: one is to simulate by EOQ; the other is to simulate not by EOQ. Adopting the traditional inventory theories-EOQ and being merged into stochastic factors, the former simulates the stochastic inventory control. The later more corresponds with the basic thought of simulation. There are detailed flow charts in the paper.Chapter three concentrates on the simulation of logistics centers. There are two lands of logistics centers siting, namely continuous and discrete. As for continuous siting models, presume the amount of logistics centers to solve the problem andobtain the best solution. Discrete siting ones run all kinds of schemes and then selectthe best satisfied one based on the logistics cost.Chapter four realizes the simulation system of logistics management. First presentthe system architecture and development tools. At the same time offer the method ofdatabase connection. Then illustrate the inventory control sub-system.In view of the level of the author, there are deficiency and inaccuracy, I would bevery glad to appreciate criticisms and suggestions from professors, learners andother readers.