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The advantages of simulation in logistics processes

By Victor Smith and Guido Lavalle Germain

The computer was born to simulate. The Mark I, usually considered the first electromechanical computer was developed by Howard Aiken at Harvard University, in collaboration with IBM. The use for which it was developed was to perform ballistics calculations in the aftermath of World War II.
The simulation feature of the computer application was developed over the years in tandem with progress geometric computing power of machines, and found fertile ground in the various branches of engineering and struck today in optimization of operations and logistics business.
Consider the following example: if a truck has to make deliveries in three places, there are six possible routes, which can be assessed easily. However, if you are 25, are already trillions escape possibilities and what can be optimized without the use of a computer. The driver of the American company UPS Mail conducts an average 150 deliveries a day? the number of possible routes is enormous.
To optimize the routing, the company developed a project in the late 90's, in collaboration with the Massachusetts Institute of Technology who, after three years, reduced capital costs by about 30%, and operating 7%. Many millions of dollars for a company that, at the time, delivering packages over 13,000,000 annually.
Examples of application of the computational power to simulate business processes are optimized logistical networks, the distribution schedule of oil and its derivatives, the optimal design of the business of container shipping, the simulation of physical processes such as chemical plants and nuclear simulators for operator training, business simulations. All of them of great practical application in leading companies in the country. Cases like the above
multiply, even in our country, where one of the winners of logistics ARLOG 2008 was just the application of discrete simulation to optimize the operations of a freight train.
The use of to operate computer databases, or as a business interface, opaque use in process optimization through simulation. This is a potential that is usually not exploited and their use may well expand the impact of the tool in corporate profitability.
The authors are professors of management and technology programs of the Universidad Austral.