The Simulation Study Of Manufacturing Enterprise In Resource Planning With Outsourcing

The unstable markets increase volatility of demand during the current economic transition,this requires enterprises to make their resources reasonable arrangement. The leading enterprisesbegin to look for an external production capacity as the buffer pool of theirselves’ productioncapacity. A good solution is to use outsourcing to solve the limitation of the capacity. This paperstudies the rational allocation of own production capacity and the size of outsourcing when thedemand uncertainty.In this paper, we take manufacturing industry as the industry background. On the basis ofprevious studies, we use linear programming to build the cost model that the goal is to minimizethe cost and ues arena simulation software to do the resut. Based on transaction cost, economesof scale and comparative advantage as the basic theory, the paper draw the resources allocationschemes under different conditions and mainly do the work in the following aspects:(1)Analyse the cost under outsourcing environment, structure the cost model. Meanwhile,the cost is closely related to the size of the production resource capacity.Then use arenasimulation software to bulid the simulation model and set the parameters and variables based onthe cost model which is done at the front part of the work.(2)Carry out what-if simulation analysis that aimed at minimizing the total cost using thesimulation model. Discuss the allocaton of the resources in four conditions: sufficient demand,seasonal fluctuation; shortage of demand, seasonal fluctuation; no seasonal factors, changes indemand and seasonal factors, changes in demand. Finally, see the best economies of scale whenthe market environment changes.(3)According to the simulation conclusion and the actual situation of a large-scalecustomized company, we get the real demand and its volatility, then put forward the allocaton of the resources.Through the what-if analysis, this paper gets the conclusion: outsourcing can effectivelycontrol uncertain market demand and as a kind of enterprise behavior help enterprises to carryout a more efficient allocation of resources which resulting in reducing the loss of order andincreasing the profits. Also the allocatons of the resources are different under different marketenvironments. When sufficient demand, seasonal fluctuation: with the season influence factordecrease, increase the long-term capacity and reduce short-term capacity of outsourcing. Whenshortage of demand, seasonal fluctuation: rely mainly on short-term capacity of outsourcing withseasonal fluctuation pronounced and long-term outsourcing is mainly used with no seasonalfluctuation. When no seasonal factors, changes in demand: enterprises rely mainly on long-termcapacity of outsourcing. When seasonal factors, changes in demand: increase short-termoutsourcing capacity when shortage of demand and long-term outsourcing capacity should beenlarged when demand is sufficient.