Case Study: Container Supply Chain (CSC) Performance
(Outline, 26/1-2015 – details will follow later).
Container supply chains are considered the backbone of trade since a substantial part of the goods is
transported in containers. Searching for opportunities to enhance efficiency of container logistics is a
key challenge for supply chains. In this case study you will simulate the container supply chain (CSC)
serving the upstream oil and gas exploration and production activities on the Norwegian Continental
Shelf. Several companies are involved in this supply chain, including Container owners, Suppliers,
Transporters, Supply bases, Transporters and Oil Companies/Operators (Figure 1). Around 100 000
containers flows through this supply chain annually.
Figure 1: The upstream oil and gas supply chain on the Norwegian Continental Shelf
By simulating the operation of the CSC you get an understanding of the current performance. Based on
this information, you can propose changes that might improve performance. By changing the model of
the CSC you can test the effect of changes on performance.
To define the container operation we describe its dynamics. The typical cycle of a cargo container (see
Figure 1) starts when the Container owner is asked by a Supplier for an empty container. The empty
container is loaded on a truck provided by a Transporter and delivered to the Supplier, who fills it with
the merchandise to be shipped. Once the container has been filled, a Transporter moves it to the
Supply base, as indicated by the consignee (receiver/buyer) to whom the cargo is to be delivered. The
filled container is transported by truck to the Supply base, where it will be inspected and loaded onto a
supply vessel. Once all requirements for the filled container at the Supply base have been satisfied, the
container is then loaded onto a Supply vessel of a Transporter. Once loaded on the Supply vessel, the
filled container is transported to the off shore platform at which it is unloaded from the Supply vessel to
the platform. . The Operator (the consignee) receives the container, unloads the goods, and returns the
empty container to the Container owner, which performs maintenance on the container if it is damaged
or dirty.
Step 1: Simulating the operation of the Supplier
The Supplier has historical records of its container logistics showing its current operation (Figure 2).
Figure 2: Snapshot of manually recorded log of container opening and closing. One container pr. line.
(Ref. file: Supplier-Container-Filling.xlsx)
The empty container pool required to handle this performance can be found from the statistics.
From the historical records in Figure 2 you can find the number of containers handled each day over the
three months period recorded.
Make a simulation model showing the system and its entities.
Simulate the events container arrival at container pool (at the Supplier), container departure from
container pool, (container opening and closing), and container shipped to Operator.