Development of A Simulation Model for The Shipping Planning System and Storage Capacity for Bulk Materials

Abstract

Leveraging maritime transport for bulk material shipments is a common approach in supply chain cost optimization efforts. However, the operational aspects of this shipping method are characterized by limited visibility and high levels of uncertainty. This condition is negatively correlated with the company's ability to meet established service level standards, ultimately leading to a decline in consumer trust. This research develops a simulation model to evaluate three scenarios aimed at improving service level. The three factors evaluated are optimization of port operating hours, implementation of a reorder point system, and increasing ship capacity. By implementing a combination of these strategies, the existing distribution system can be significantly improved. The results of this study indicate that implementing a combination of these scenarios can substantially improve the performance of the existing system. The most influential factor is the implementation of a reorder point (Factor 2), which results in an increase of 13.80%. The factor combination that yields the highest service level is scenario number 10, which achieves a service level of 92.36%.