Simulation Model of Maritime Inventory Routing Problem with Particular Application to Cement Distribution

Abstract

Simulation is undoubtedly a very useful tool for modelling a system specifically in the presence of stochastic elements and complex interactions between the system entities. In this paper, a simulation model to support decision making in ship scheduling for Maritime Inventory Routing Problem (MIRP) with particular application to cement distribution is presented. The system under study is a combined discrete and continuous system, where a heterogeneous fleet of ships with various sizes and types of contracts transport bulk cement products from production facility (Central Supply, CS) of a cement company to its packing plants (Distribution Centres, DCs). The simulation model in this study has been designed and developed thoroughly to emulate the complexity of the real system of the MIRP. The simulation model has demonstrated the capability to provide support for decision making in ship scheduling of the heterogeneous shipping fleet in the following forms: (a) real time states of inventory levels at CS and DCs and (b) ships’ routing. In addition, one of the main strength of this simulation model is its flexibility. It can be easily expanded or adjusted to different size of system entities for example number of CSs, DCs, berths, vessels, and products.