A case study for simulation and optimization based planning of production and logistics systems

This paper introduces a practical approach for the comprehensive simulation based planning and optimization of the production and logistics of a discrete goods manufacturer. Although simulation and optimization are well-established planning aides in production and logistics, their actual application in the field is still scarce, especially in small and medium-sized enterprises (SMEs). This is largely due to the complexity of the planning task and lack of practically applicable approaches for real-life planning scenarios. This paper provides a case study from the food industry, featuring a comprehensive planning approach based on simulation and optimization. The approach utilizes an offline-coupled multilevel simulation to smooth production and logistics planning via optimization, to optimally configure the production system using discrete-event simulation and to optimize the logistics network utilizing an agent-based simulation. The connected simulation and optimization modules can enhance the production logistics significantly, potentially providing a reference approach for similar industry applications.