Group Exercises 2024

SCM simulation
2324_SC_5_3_019_E
Group Exercise 1
Hamed Jalali
January 2024
2 points out of 20
Deadline: February 11, 23h59
1
Instructions
Please write a short PDF report answering the Tasks. Your report should include a zipped folder
containing your AnyLogic model with the optimization experiment.
The purpose of this exercise is to provide a more complete model of the car manufacturer’s
process and to make some analysis about the performance of the production line. The following
video shows the different steps of car production. You can have a quick look to get some general
idea. Through this group exercise, you will also learn several new capabilities of AnyLogic.
https://www.youtube.com/watch?v=Zn6scKf7k_0
Go to Courses and download the file CarAssembly. This model is incomplete and provides the
basis for this exercise. An explanation of the model will be provided during the class.
Step 1) Continuous simulation

Previously, the simulation would stop after 40 hours when the pre-assembly stage required
maintenance. However, in reality, work-in-process cars would continue production the
following day. Therefore, a more realistic approach is to pause the production line for 8 hours
and resume the next day. There are several ways to accomplish this in AnyLogic, but the
simplest method is to adjust the capacity of the pre-assembly unit accordingly. Keep in mind
that the unit's capacity is normally 5, but during maintenance, it reduces to zero. The following
link explains how to do this:
https://cloud.anylogic.com/model/765a3b05-1861-4972-a547-b298c4816c26?mode=SETTINGS
You can also see https://anylogic.help/anylogic/data/schedule-calendar.html
Check the preview section to verify whether you did it correctly.
Step 2) The KPI dashboard

To understand the performance of the production line, the management has asked for a KPI
dashboard. Following, please find the details:
2-1) Requested figures
Task A for the report) Figures requested: put a snapshot in your report
2
1) Use one Bar chart to track number of received orders, number of finished orders and
the backlog (= received orders – finished orders).
▪ You need to use Analysis → Bar Chart in AnyLogic. Update the chart every 30
minutes.
2) Use a time plot to draw revenue and material cost as a function of time.
▪ The following video explains the calculations of these costs:
https://youtu.be/WG6mH5cZGgw
▪ Important: You also have to add the formula when cars are not inspected
You have to use Analysis → Time plot in AnyLogic. Update the chart every
30 minutes
3) Draw a histogram for the flow time in assembly stage (ignore the pre-assembly) with
inspection.
▪ Use Analysis → histogram in AnyLogic. You need to draw
“timeMeasureEnd.distribution”
4) Draw a histogram for the flow time in assembly stage (ignore the pre-assembly) without
inspection
2-2) Average flow time with inspection

Make an output and record the average flow with inspection. In your report, you need to provide
a 95% confidence interval for this output (see Table 3).
2-3) Weekly Profit calculation

One of the most important KPI for the manager is the weekly profit of the assembly plant. The
following equation describes this profit:
𝑊𝑒𝑒𝑘𝑙𝑦 𝑃𝑟𝑜𝑓𝑖𝑡 = 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 − 𝑀𝑎𝑡𝑒𝑟𝑖𝑎𝑙 𝑐𝑜𝑠𝑡 − 𝐷𝑒𝑓𝑒𝑐𝑡 𝑐𝑜𝑠𝑡 − 𝑃𝑒𝑟𝑠𝑜𝑛𝑛𝑒𝑙 𝑐𝑜𝑠𝑡 − 𝑊𝐼𝑃 𝑐𝑜𝑠𝑡
Make an output from the analysis tab for weekly profit. In your report, you need to provide a
95% confidence interval for the Weekly Profit (see Table 3).
Table 1: Parameter needed for profit calculation
Parameter Value
Revenue per unit 40
Material cost per unit 15
Defect cost per unit 20
Personnel cost (per person per week) 1
WIP cost per unit (paid before every maintenance) 0.01
3
• Defect cost: Based on historical data, 5% of cars that do not get inspected will show
some defect in the first few weeks of use. When a defect occurs, the cars are returned
for repair with the repair time being “triangular(3, 5, 10) hours”. The capacity of the
repair unit is 3 (there are 3 personnels). The defect cost represents the cost to repair the
cars plus the penalty paid to the customer plus the cost of a replacement car given to the
customer. Please add this repair and defect cost to the model (no animation is required).
▪ Important: to add the repair unit use Service & Resource blocks and make
sure to define a parameter called “Cap_repair” for the repair unit capacity
which equals 3.
• WIP cost: At time 𝑡, the WIP cost can be calculated as follows:
𝑊𝐼𝑃 𝑐𝑜𝑠𝑡𝑡 = (𝑇𝑜𝑡𝑎𝑙 𝑜𝑟𝑑𝑒𝑟𝑠 𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑𝑡 − 𝑇𝑜𝑡𝑎𝑙 𝑜𝑟𝑑𝑒𝑟 𝑓𝑖𝑛𝑖𝑠ℎ𝑒𝑑𝑡 ) ∗ 0.01
Calculating WIP cost needs attention because the calculation must be repeated at
specific moments of time or more precisely, before every maintenance. The first step is
to make a variable for the WIP cost. Then the easiest way is to implement an
. Use a Timeout event with the mode Cyclic and then in the Action tab, update the WIP
cost.
Step 3) Optimization
The manager is convinced that reallocating personnel could improve the performance of the
production line. Currently, there are 17 personnel available (excluding the pre-assembly stage)
who could be reassigned to different stations, thereby changing the capacity of those stations.
Additionally, there are other factors that could be modified. Table 2 provides a list of the
decision variables that the manager wishes to consider.
Table 2: decision variables and objective functions
Decision variables Objective functions

Capacity of each station except for battery which is fixed to 2 Maximize Profit
(6 decision variables)
Inspection rate → introduce a new parameter
The following video explains how to run an optimization experiment in AnyLogic. Note that
some parts of the video are not relevant (move to minute 2:30).
https://www.anylogic.com/resources/educational-videos/how-to-video-optimization-experiment-/
In the advanced options of optimization, uncheck “allow parallel evaluations”
Use the best computer among the computers in your group
4
Additionally, you need to consider the following:
• Run the model for a week
• You need to define a constraint for the total number of personnel. To do that, the
following expression is handy (2 is the fixed capacity of the battery station):
2+Cap_Power+Cap_Suspe+Cap_Body+Cap_Interior+Cap_inspect+Cap_repair
Task B) Fill in the following table and provide it in your report (See the Word file in
Courses).
Table 3: Summary of final Optimization outputs
No-optimization setting Max Profit

Max Profit
(Default) 100% inspection
Expected profit 95% CI
Expected flow time 95% CI
Cap_Battry 2 2 2
Cap_Power 2
Cap_suspension 2
Cap_Body 2
Cap_interior 2
Cap_repair 3
Cap_inspect 4
Inspection rate 0.5 1
Task C) The manager is thinking of doing 100% inspection and removing the repair unit
completely. Please run the optimization again with this new model and report the outputs in
Table 3. What do you suggest to the manager?

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SCM simulation

Step 1) Continuous simulation

You can also see https://anylogic.help/anylogic/data/schedule-calendar.html

Check the preview section to verify whether you did it correctly.

Step 2) The KPI dashboard

2-2) Average flow time with inspection

2-3) Weekly Profit calculation

• WIP cost: At time 𝑡, the WIP cost can be calculated as follows:

𝑊𝐼𝑃 𝑐𝑜𝑠𝑡𝑡 = (𝑇𝑜𝑡𝑎𝑙 𝑜𝑟𝑑𝑒𝑟𝑠 𝑟𝑒𝑐𝑒𝑖𝑣𝑒𝑑𝑡 − 𝑇𝑜𝑡𝑎𝑙 𝑜𝑟𝑑𝑒𝑟 𝑓𝑖𝑛𝑖𝑠ℎ𝑒𝑑𝑡 ) ∗ 0.01

Decision variables Objective functions

In the advanced options of optimization, uncheck “allow parallel evaluations”

Use the best computer among the computers in your group

No-optimization setting Max Profit

Expected flow time 95% CI

Inspection rate 0.5 1

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