A Simulation Model for a Production Distribution System

The problems and drawbacks of the Physical Distribution System (PDS) of a production company are described. A simulation model which takes into consideration the activities of the PDS and some part of the production system of the company are presented. Using this simulation model, experiments have been performed to find the effect of certain critical variables like service level, lead times and production rate on the total cost. The limitations of this study and potential areas of future work are assessed.