Efficient simulations of supply chains

Abstract

High volume production flows are modeled by nonlinear hyperbolic partial differential equations representing conservation laws. These models have Little's law explicitly built into the formulation. Borrowing from concepts in gas dynamics and vehicular traffic models we derive several prototypical equations representing linear as well as reentrant factories. Multiple products, dispatch polices and control actions can be modeled. Standard hydrodynamic codes provide very fast simulations of these models allowing us to link them together to form efficient supply chain simulations.

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