Negussie, Robel (2014) Modelling and Simulation of Ethiopian Leather Industry Supply Chain: A Discrete-Event Simulation Approach. Masters thesis, Addis Ababa University.
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Abstract
Supply chain system is a non-deterministic in nature so that it behaves in an uncertain manner which forms a complex net of physical and information flow at which decision made in one stage of the supply chain will usually have unpredictable impact on other stage of the chain. Having in mind all these and other behaviours of a supply chain that makes it challenging to manage, manufacturing industries are striving for the flow of their raw materials and goods to the right place, at the right time, with the right quantity with a reasonable price. Due to the by-product nature of the raw material and lack of integrated supply chain, the Ethiopian leather industry particularly the tanning industries are suffering from the shortage of raw hide and skin, poor quality of supply and price hikes of the raw material which create a big challenge for the survival of some of the tanneries. Currently the tanneries are faced with two conflicting objectives, the need for collecting large amount of skin when available in the market to use it during scarce times and quality deterioration of the raw material if stored for more than fifteen days on average. Different methodologies that are appropriate for supply chain modelling so as to improve its performance are reviewed. Modelling and simulation is found suitable and ARENA® simulation software is prioritized among the number of available commercial simulation software to analyze and propose solution for Ethiopian Leather Industry supply chain problems. Thirty journal articles are reviewed based on content which use simulation and modelling methodology to overcome different supply chain management challenges. Gaps are identified regarding the performance measurement and other parameters that should be considered while modelling and simulation of a supply chain. This study focuses on filling the gaps and develops a four echelon supply chain model with the help of Arena simulation software to investigate and improve the Ethiopian leather industry supply chain performance with a special focus on the upstream suppliers of hide and skin till it reaches to the tanneries. It concentrates on the way how to create balance between the conflicting objectives while keeping the operating performance of the tannery optimum and the inventory stored within a reasonable level. Four scenarios on the inventory replenishment strategy for the tanning industries through varying the time between consecutive orders and the quantity of skin per unit order are developed. After running the trials a significant method to control the inventory level of the tanneries while keeping the operating performance in a reasonable level is achieved. The outputs are also analyzed to share inventory stock information in every tier of the supply chain and help assigned personnel to make decisions based on facts rather than assumptions in such uncertain environment. Due to the similarity of the Ethiopia leather industry supply chain, hence it is legally tied and proclamation supported, the research recommends the application of the developed model for all tanning industries with slight modification of the model and the input data provided. Finally three basic points for future research are identified and recommended.
| Item Type: | Thesis (Masters) |
|---|---|
| Uncontrolled Keywords: | Supply Chain, Quality, Inventory Management, Discrete-Event simulation modelling, leather Industry |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management H Social Sciences > HF Commerce T Technology > T Technology (General) T Technology > TJ Mechanical engineering and machinery |
| Divisions: | Africana |
| Depositing User: | Andriamparany Edilbert RANOARIVONY |
| Date Deposited: | 21 Nov 2018 08:15 |
| Last Modified: | 21 Nov 2018 08:15 |
| URI: | http://thesisbank.jhia.ac.ke/id/eprint/7560 |
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