Developing a Decision Support System for Integrated Decision-Making in Purchasing and Scheduling under Lead Time Uncertainty

Rolf, Benjamin
Reggelin, Tobias
Lang, Sebastian
Galka, Stefan
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Decision-making in supply chain management is complex because of the relations between planning tasks from different stages and planning levels. Uncertainties such as unpredictable supplier lead times and supply chain disruptions further complicate decision-making. Considering the case study of a company in printed circuit board assembly, a three-level concept is proposed that includes a decision support system. The global single-source supply network is characterized by highly variable lead times. Hence, the company maintains high inventory levels to prevent running out of stock. The decision support system considers the purchasing and scheduling decision problems in an integrated way. The prototypical implementation of the purchasing algorithm uses a genetic algorithm that recommends reorder days and order quantities using a simulation model. In addition, it evaluates the risks of the recommended solution by calculating the probability of stockouts for each order cycle.
Simulation Modeling and Digital Twins for Decision Making in the Age of Industry 4.0, decision support system, simulation, supply chain optimization, purchasing, cyber-physical system
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