Simulation model for the determination of changes in costs and capital commitment

2 Simulation model for the determination of changes in costs and capital commitment 

Besides the segmentation of the material flow, the production type of the company can be set individually. Additionally, a broad variety of delay times, structures and settings can be defined in advance. For example, demand and order frequency can be adjusted dynamically for any of the defined segments. Due to the flexibility, the simulation can 

The distinction of three different product groups in each functional stage meets the requirements of the extrapolation framework introduced in Chapter 4. 

6 Determination of an SCFs effect on costs and capital commitment 

Since the simulation is run twice, the final values displayed by the simulation are the differences between the status before and after an SCI s implementation in terms of inventory and related costs. Subsequently, the mathematical formulas aligning the model are exposed according to the stated subsets. A selection of the main variables is shown in Table B-1 in Appendix B. 

---