DESIGN AND SIMULATION OF A LOGISTICS NETWORK FOR A TELECOM PRODUCTS SUPPLY APPLICATION: A CASE STUDY

This is a case study that resolves a telecom product logistics distribution network design and simulation analysis problem for Sichuan Telecom Company in southwestern China. A mixed integer program was applied to determine the number and locations of distribution centers. To compare different order-assignment strategies, we developed simulation models to represent dynamic processes of order arrivals, distribution center operations, and delivery transportation. We then made experimental runs through simulation to evaluate the system performance under different strategies with regard to different criteria such as cycle time, cost, service level and resource utilization. Significance: Designing a good logistics network requires evaluation of system performance under both static and dynamic conditions. Combining mathematical programming and simulation provides an effective solution to this requirement. This study provides a valuable experience that could benefit other practitioners encountering similar problems.