Modeling gas turbine parts procurement strategy using simulation-based optimization (Case study: Oil Turbo Compressor company)

Document Type : Original Article

Authors

1 PhD student, Department of Industrial Management, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran

2 Associate Professor, Department of Industrial Management, Faculty of Management and Economics, Tarbiat Modares University, Tehran, Iran

3 Associate Professor, Department of Industrial Management, Faculty of Management, University of Tehran, Tehran, Iran

Abstract

Supply chains are among the most prominent infrastructures of the world’s complex economy. In global supply chains, parts and raw materials are received at warehouses and production lines from suppliers scattered throughout the world to be used for manufacturing products and delivered into sales channels. Optimal control of inventory and operations throughout the supply network is an intricate problem that needs the development of proportional methods. This study aims at providing a method for simultaneous decisions about determining the type and parameters of the inventory control policy, and suppliers. A simulation-based optimization framework is selected for solving this problem. First, a mathematical programming model is developed. Next, a discrete-event simulation model is developed, verified, and embedded into the mathematical model. Finally, the hybrid model is solved using Golden Eagle Optimizer. Results reveal that the continuous review policy is optimal for all of the parts. In addition, all of the parts procurement orders should be submitted to only two of the five suppliers.

Keywords

References

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