Designing a Model and Simulating the Production Chain of the Metal Industries in a System Dynamics Approach (Case Study: Shablon Tajhiz Company)

Document Type : Research Article

Author

• Farzad Amiri

Department of Industrial Engineering, Faculty of Engineering Management, Kermanshah University of Technology, Kermanshah, Iran.

10.22067/jstinp.2023.85540.1079

Abstract

The supply chain includes all the activities required to deliver a product or service to end customers. By adopting the above approach to the supply chain, production and distribution functions are added to the chain as part of the flow of goods and services. The supply chain in this approach includes three areas: procurement, production, and distribution. This article results from a research project commissioned by the Kermanshah Industry, Mining, and Trade Organization to improve the production capacity of metal industries in the province. Based on this, effective loops were identified with the initial introduction of 26 selected companies active in the province and conducting several rounds of interviews with the management and experts of these companies. With the suggestion of the Industry, Mining, and Trade Organization and with the agreement and participation of the best and most complete company active in this context (Shablon Tajhiz), it was modeled and executed. The formulation was designed with the participation of the panel of experts and in the form of discussion sessions based on the trial and error method. In order to confirm the results, the statistical data of the company was extracted from 1390 and compared and validated with the results obtained from the model's output. Since the nature of these loops and their constituent variables change over time in the actual state. A dynamic systems approach has been used to simulate the model and consider dynamic conditions and their mutual effects. The structure of the results was checked and confirmed through the sensitivity analysis of the findings. It is worth mentioning that the analysis and drawing of the results were done using Vensim software.

Keywords

• Model design
• Production chain simulation
• Metal industries
• System Dynamics
• Missing loops

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