Simulation Modeling Applications in Organization Management

The purpose of this thesis is to develop simulation models in areas of supply chain, manufacturing systems, and risk management in case of stochastic driving factors, very complex systems, and interrelated factors where analytical or mathematical models are not effective. To understand the structure of supply chain, manufacturing systems, and risk management models, a simulation model for Sinokrot Company is developed according to a methodology which includes collecting and analyzing data, building the simulation model using ARENA software and Excel sheets, verification and validation, statistical experimented design, and performance analysis. Many simulation scenarios are developed in order to evaluate: ad hoc system, decisions at all levels to achieve organization objectives such as increase products sales, allocation a specific production line, inventory management, and others. Besides, this thesis deals with developing optimization-simulation models to design or re-design inventory management parameters in order to minimize inventory costs, inventory level based on lean manufacturing philosophy, and maintain stock-out percentage less than specific point. Those models are considered as knowledge contribution in these areas where simulation models are recommended to improve ad hoc system. It is concluded that the role of the developed simulation models in improving supply chain, manufacturing system and risk management, is needed where decisions at all level are made based on simulated scenarios or polices in stochastic and complex environment.