CASE STUDY CONCEPT: Using supply chain simulations for disaster response (DR) mission planning provides a framework for effective collaboration and coordination between logistics providers from Government, Military, NGO, and Commercial organizations. The more these organizations work together in a coordinated and timely manner, the more successful the mission will be.
Earthquakes are not uncommon in the foothills of the Himalayas. But nobody can predict exactly when or where they will happen, so each one is a surprise. And then people have to respond quickly. They need to map out where the earthquake struck; get damage and casualty reports; and deliver people and aid supplies in a useful and timely manner. The screenshot below shows the supply chain set up to deliver aid supplies to Kathmandu, Nepal after an earthquake in 2015. Aid supplies arrived from three global depots where aid supplies had been stockpiled to be available for emergencies such as this. Imagine you are the person in charge of logistics for this mission. How will you manage this supply chain to support the mission?
(click screenshot to see larger image)
NOTE: This is an advanced case. Work through the three challenges of the beginning case, “Cincinnati Seasonings” before taking on the challenges in this case.
THE NEPAL EARTHQUAKE – SPRING 2015
This scenario is modeled on actual events that occurred during April and May of 2015. The initial supply chain model presented here is built using data supplied by the Global Logistics Cluster of the UN World Food Program. In the model, supplies are flown in from depots in: Brindisi, Italy (upper left); Shanghai, China (right side); and Kuala Lumpur (lower right). The depot at Kuala Lumpur also sends supplies by ship to a freight depot in Kolkata, India (lower center). At Kolkata the supplies are offloaded from ships and transferred to trucks for delivery to Kathmandu.
A distribution center (DC) is set up next to the Kathmandu airport and local warehouses are established in the areas of Nepal that suffered the greatest damage and casualties. In the the first week after the earthquake large amounts of supplies are delivered by air freight and by truck to the Kathmandu airport DC.
The screenshot below shows country level detail for the disaster response (DR) supply chain in Nepal. The icons used for facilities in the supply chain are standard icons used by the United Nations and other DR and humanitarian aid organizations.
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Kathmandu airport DC is the focus of deliveries for aid supplies from outside the country. Supplies are stored in the DC, and from there are moved by truck and helicopter to the local warehouses. There are four local warehouses. They are: Dhading Warehouse (upper left); Babare Warehouse (upper right); Charikot Warehouse (center right); and Deurali Warehouse (lower right).
Helicopters and trucks are used to deliver supplies to the warehouses in Dhading because the road to that location is narrow and the going is slow, so trucks alone cannot meet the demand for supplies. The warehouse at Babare is supplied entirely by helicopters because it is located up in the mountains and there are no roads from Kathmandu to Babare that large numbers of trucks can use, as shown in the satellite view screenshot below.
Trucks deliver supplies to the other two warehouses because the roads are adequate (load this supply chain model into your edit screen and zoom in on the four warehouses; switch to satellite view and see the actual locations and the condition of the roads).
MODELING AND SIMULATING DISASTER RESPONSE SUPPLY CHAINS
This supply chain is modeled by combinations of four types of entities placed on the map: 1. PRODUCTS; 2. FACILITIES; 3. VEHICLES; and 4. ROUTES. Examples of these entities from the model are shown below. Data used to define the entities in this model was provided by the Global Logistics Cluster of the World Food Program. See more about the Global Logistics Cluster in this short YouTube video.
The screenshot below shows a group of the four entities that moves products between the Kathmandu Airport DC and the Deurali local warehouse:
- Size and weight of a PRODUCT called “Food (pallet)”
- Storage capacity, internal product demand, and product on-hand amounts for FACILITY called “Kathmandu Airport DC” — production of food at the depot represents food that is acquired locally
- Cargo volume and weight, and speed of a VEHICLE called “Medium Trucks -20” which is composed of 20 medium trucks
- Round trip time and distance on ROUTE called “Kathmandu – Deurali” taken by those 20 trucks to deliver products from Kathmandu to Deurali, plus amounts of different products they drop off at Deurali — route is shown in blue on the map
(click on screenshot to see larger image)
This model assumes other vehicles at the local warehouses move supplies to individual villages and local aid stations in the vicinity of each of the warehouses. The daily product demand numbers shown for a local warehouse represent the combined demand from all the villages and aid stations served by each warehouse. Data for any or all of the entities can be changed as needed if better information becomes available.
NOTE: To further explore logistics operations within the vicinity of a local warehouse, a lower level supply chain model can be built. That model would begin with a local warehouse and show the vehicles and routes that move those supplies from this warehouse to villages and aid stations served by the warehouse. Model the warehouse as producing amounts of products equal to the amounts delivered to it as shown in this higher level model. Vehicles such as SUVs, mules or even human porters moving on routes that may be little more than dirt paths can be accurately simulated in this lower level model. BUT REMEMBER, you first need a supply chain that works at this higher level before going into lower level detail. If a supply chain doesn’t work at the higher level, then it will not work at the lower level either.
FIRST CHALLENGE:
Get this disaster response supply chain to run for 15 – 30 days
Import the “Nepal Disaster Response Scenario” supply chain model from the online library and open it up in your edit screen to inspect the model. Click on the menu tabs for Products, Facilities, Vehicles, and Routes. Select entities in those menus and look at their data. Zoom in on some of the facilities and switch to the map view to study their location and the surrounding area.
Then click on the “Simulation” button and run a simulation to see how well this supply chain works. You see trucks and planes and ships running on their routes, and real time displays on the right side of the screen showing day to day inventory levels for different supplies.
As the simulation is running click on some of those data displays for the supply depots and the Kathmandu airport DC and local warehouses to see the trends in the on-hand amounts of different supplies. You see various product inventories are trending up and others are trending down at different facilities. Then on the fifth day (as shown below) the Kathmandu airport DC runs out of construction material.
(click on screenshot for larger image)
The question now is how to fix this problem. You can increase the amount of construction material shipped into Kathmandu from outside sources. Or you can look at the distribution and consumption of construction materials at the facilities in Nepal and see if there are opportunities to fix this problem by better managing supplies within Nepal.
UNDERSTANDING THE FLOW OF PRODUCTS THROUGH THE SUPPLY CHAIN
The simulation results screenshot above shows delivery routes for supplies flowing from the Kathmandu Airport DC out to the four local warehouses in the areas that had the greatest damage. The diagram below is composed of the on-hand inventory graphs for the Kathmandu Airport DC and the four warehouses.
This diagram shows inventory levels trending downward at Kathmandu, but inventory levels trending upward at the local warehouses indicates supplies being sent are exceeding demand at those warehouses. It looks like a good way to fix the running out of construction products and other products at Kathmandu Airport DC is to reduce product amounts being sent out to the satellite warehouses.
The diagram below is composed of the on-hand inventory graphs for the Kathmandu Airport DC and the four depots outside Nepal that sent aid supplies to Kathmandu. It shows inventory levels at the four depots to be holding generally stable with a few exceptions. In the Shanghai Depot and the Kuala Lumpur Depot the green line (food) and the purple line (health supplies) are trending downward indicating need for adjustments there.
The “V” shaped pattern of on-hand inventory at the Kolkata Freight Depot shows the drawdown of inventory as it was shipped to Kathmandu, and then inventory levels rise again when the ocean freight shipment arrived from Kuala Lumpur.
MENTAL MODELS FOR MANAGING SUPPLY CHAIN OPERATIONS
From scanning these on-hand inventory graphs one can see the patterns and trends of inventory as supplies flow into Kathmandu, and from Kathmandu to the local warehouses. It looks like reduction of the flow of inventory from Kathmandu to the warehouses will fix the problem of declining inventory levels at Kathmandu. There may be no need to increase shipments into Kathmandu.
Go ahead and make those adjustments. Edit the supply chain model and reduce the drop off amounts for products on the routes from Kathmandu to the four warehouses. Or reduce the number of deliveries by increasing the delay between departures for the vehicles that run on the delivery routes. Then run some simulations and see what happens and what works best.
When you have questions about how to work with this case, the answer is always to ask yourself, “what would I do if this were the real world and I was the person in charge?” Model and simulate different possible options. Make plausible assumptions, and add/change/delete products, facilities, vehicles, and routes to model different options. Simulations show how well they work. Pick the options that work best.
As you make adjustments to the model and run simulations, you will develop a mental model of how this supply chain works. You will get an intuitive sense of how adjustments to any of the four entities (products, facilities, vehicles, and routes) affects the other entities. After you solve the first problem, other problems will arise. There are many possible solutions to the problems you encounter, and the problems you encounter will depend on the actions you take to solve previous problems.
Keep trying different adjustments until you get the supply chain to run for 15 – 30 days. There is no point in getting the simulation to run for more than 30 days because after 30 days the situation in Nepal will certainly have changed, and you will need to change the supply chain design as well.
After the first rush of getting supplies to Nepal in the first 15 days, you then need to come back and work on ways to lower operating costs and inventory levels at the facilities in the supply chain. Consider your supply chain model that now runs for 15 days to be the supply chain that supported the initiation phase of this mission (save a backup copy called “Initial Phase SC”). Now as the mission progresses, you need to redesign the supply chain to better support the sustainment phase. The immediate emergency is past, aid needs to be delivered over a longer term to assist people to rebuild (name this redesigned supply chain “Sustain Phase SC”). Ways must be found make better use of trucks, and shift from air freight to ocean freight and rail freight where possible. These are slower modes of transport, but much more cost efficient for moving large amounts of supplies. The screenshot below shows the harbor and freight container operations at the Kolkata facility in India.
The mental models you develop for this supply chain will help you see opportunities to lower costs by better use of vehicles and transportation options, and see opportunities to lower inventory levels by better matching of product deliveries with product needs at each facility. There are useful ideas to be found in the section “Reducing Inventory and Operating Costs”. The intuitive sense you develop in this case study will also serve you well in the real world to help you manage similar supply chains.
DR MISSION REPORTING TEMPLATE — There is reporting template with a performance dashboard and financial reports available to use for analyzing your simulation data. The template is built for a 15-day period. You can import your simulation data after trimming it for 15 days (as shown at bottom of Analyzing Simulation Data section). The dashboard will show where the best opportunities are for improvement, and the operation reports give you detail needed for taking action. There are two mission reporting templates available:
- Download the DR Mission Reporting template here
- Download template modified to track transport cost by DC and Whse
[If you are using SCM Globe Professional version, mission reports can be generated automatically by clicking on the “Generate P&L Report” button on the Simulate Screen]
NOTES FOR USING THE MISSION REPORTING TEMPLATE — In addition to the original P&L report and KPIs, there are new features and tabs in the Mission Reporting template as described below:
- Ordering cost – an estimate of how much it costs an organization to place an order, receive the order, issue payment and put away the inventory delivered. Different companies have different ordering costs; estimates can range from $15 to $150 or more. Industry trade associations can provide data on average ordering costs for companies in their industries, or your company may already have an ordering cost it uses for EOQ calculations. The template uses a default cost of $35.00.
- Annual holding costs – often estimated at 20% of product price. Industry trade associations can provide data on average annual holding costs for companies in their industries.
- EOQ Delivery Amount and Frequency — these features use data from the supply chain model plus the ordering cost and holding costs to apply the Economic Order Quantity (EOQ) equation to suggest an amount and frequency for product deliveries to different facilities. The numbers are only suggestions and often need to be adjusted, but they provide a starting point. See more about this in the online guide section “Cutting Inventory and Operating Costs“, scroll down to the heading “Use Economic Order Quantity to Calculate Delivery Amounts and Frequencies”
- Dashboard Tab — a high level view of overall supply chain performance. You assign weights to each of the performance categories (Inventory, Transportation, and Storage) to reflect your strategy for improving operations. Assign higher weights to the categories most critical to the success of a particular mission. This will focus people’s attention on the performance categories you most want to improve. Assign category performance targets that are ambitious but achievable. The dashboard calculates percent effectiveness for each facility and the overall plan by comparing the simulation results generated by your supply chain model to your predefined performance targets. Based on the weights assigned to each target, a net performance score is calculated for the whole supply chain plan. Performance targets are recommended by logistics planners and approved by the mission commander.
- Products Tab — enter the price, weight, and volume for each product in the supply chain model. These numbers will be used by the macro equations in the first two tabs to calculate supply chain KPIs and Dashboard displays.
In this first challenge, do whatever you need to do to get the supply chain to run for 15+ days. Download the resulting simulation data and import it into the Mission Reporting Template shown above. This is the budget and performance baseline for your Initiation Phase supply chain. Save a copy. Now use the Mission Costs and KPI report plus the dashboard in the template to find areas where you can improve the supply chain design to support the next 15 days and beyond, the Sustainment phase of the mission. Make improvements in those areas, run the simulation again, and import new simulation data into the Mission Reporting Template. After several iterations of this you will have a supply chain model (operating plan) that will do the job.
CREATE A SHORT EXECUTIVE BRIEFING — a 3 to 5 page report or a short deck of presentation slides. Use screenshots and data produced by simulations to illustrate what you learned. Here are some things to keep in mind as you create your report:
- Explain what were the main problems you faced in getting your simulation to run for 15+ days. Show what you did to fix those problems.
- What were the problems you had in redesigning your supply chain model to reduce costs and excess inventory? How did you address these problems?
- Attach a mission operating cost and performance report for the first 15 days. And another report showing the changes you made for the following 15 days.
- Describe the three or four main things you learned about this how this supply chain works.
- What ideas do you have for improving the performance of a disaster response supply chain such as this?
SAVE BACKUP COPIES of your supply chain model from time to time as you make changes. Click “Save” button next to your model in Account Management screen. There is no “undo”, but if a change doesn’t work out, you can restore from a saved copy. And sometimes supply chain model files (json files) become damaged and they no longer work, so you want backup copies of your supply chain to restore from when that happens.
SECOND CHALLENGE:
Use the Mission and Operations Planning (M&OP) Process to Create Supply Chain Operating Plans
By working through the first challenge you have acquired some familiarity with this case and developed a mental model to help you understand how the supply chain works. Now imagine you are the Mission Director responsible for coordinating overall logistics operations in coalition of different public and private organizations that are participating in this DR mission. Think about all the people wanting to talk to you, and all the information to be analyzed, and all the pressure you would be under to make decisions and take action. How would you stay organized, communicate effectively, and keep people focused and collaborating effectively?
** NOTE: The design for this real-time logistics collaboration platform is presented in our article, “Massively Multiplayer Disaster Response Collaboration“, published by the U.S. Indo-Pacific Command (INDOPACOM) Center for Excellence in Disaster Management, Liaison Journal, Volume 13, Issue 2, Dec 2021. The article starts on pg. 66; view it online or download a PDF copy here – https://drive.google.com/file/d/1K81ShvL7gmvl1XBtVKpPR-1HdOq1VtkQ/view?usp=sharing
As Mission Director you are responsible for the success of the mission, yet you do not have complete authority to issue orders to all the organizations (governmental, NGO, military, and commercial) participating in the mission. You need to use a collaborative process that focuses people’s thinking, and enables quick consensus building.
Shown below is a concise, five-step, collaborative process to address this need. It is simple enough for people to understand and use in stressful and time-constrained situations. It is also robust enough to deliver the information people need to do their jobs well. It is called Mission and Operations Planning (M&OP), and is based on the commercial supply chain practice called sales and operations planning (S&OP).
Every mission needs a supply chain to support it, and the likelihood of success for a mission is heavily dependent on how well its supply chain meets the needs of the mission. Supply chain simulations quickly show what kind of supply chain a particular mission will require to support it successfully. Let’s take a look at how the M&OP process uses simulations to design mission supply chains and respond to ever changing circumstances on a disaster response mission.
THE MISSION ORDERS provide scope and objectives for the mission and describe how it will operate. This information is presented in the mission’s concept of operations or “CONOPS”. The CONOPS identifies the categories of aid supplies that will be needed and where those supplies will come from. It shows where facilities will be established in the disaster area, and defines the activities that will occur at each facility. Also defined are the personnel that will be stationed at those facilities to carry out these activities. This is shown in the screenshots below.
The CONOPS document provides high level overviews to communicate the key facts about the mission to a wide audience. It identifies the kinds of facilities that are needed and the location of those facilities. It also defines the functions and activities that will occur at the different facilities, and the personnel assigned to those facilities to carry out the activities. The CONOPS is a visual document that relies on maps and diagrams to convey its information (see examples in the case study introduction for the Syria Evacuation Scenario).
THE DEMAND PLAN is based on information in the CONOPS. It specifies what products and what amounts of those products are needed to support the activities and personnel at each facility. It is the daily operating plan for the mission. This demand plan information is collected in the two data tables shown below.
When the demand plan is finished, it shows what products need to be delivered to what facilities during a particular period of time in order to support the activities and personnel assigned to those facilities. That provides the information needed to create the supply plan.
THE SUPPLY PLAN shows the vehicles available to transport supplies and the routes and delivery schedules used by those vehicles as they deliver products to facilities. It is the daily product delivery plan. This supply plan information is collected in the two data tables shown below.
The demand plan and the supply plan produce the information needed to build a model of the proposed supply chain that will support the disaster response mission. The demand plan provides the data needed for products and facilities, and the supply plan provides the data needed for vehicles and routes. The screenshot below shows how that demand and supply plan data is used to define the four entities in the supply chain model.
RECONCILE DEMAND PLAN AND SUPPLY PLAN by building models and running simulations. Supply chain models are created with data from the two plans. Running simulations will identify the discrepancies between the two plans, i.e. where product deliveries do not keep up with product demand, and where too much product inventory accumulates.
In reconciling the demand plan and the supply plan we usually assume the demand plan will remain the same, so discrepancies must be fixed by adjusting the supply plan. By making these adjustments we are creating a supply chain operating model that can deliver adequate amounts of products to facilities to meet the demands of the mission.
The screenshot below shows the result of one of the simulations. It shows that products are running out in Kathmandu. To respond to this and other problems that are identified by the simulations, we will adjust the supply plan. We will adjust the number of vehicles used on different routes to deliver products to different facilities. Find useful information on lowering inventory and operating costs in the Lowering Inventory and Operating Costs section of this online guide.
This 5-step M&OP process provides an organizing framework to structure the work to create supply chain models and operating plans. It provides a more orderly and understandable picture of the supply chain you are managing and the interactions between the four entities (products, facilities, vehicles, and routes). Using this framework you can apply better analytics and find better supply chain designs than was possible with the less structured approach used in the first challenge.
After exploring different options for facilities and vehicles and routes, an effective and efficient supply chain model will emerge. The simulations provide the feedback needed to fine tune the design of the supply chain so it runs for the required number of days at a lower cost and with lower amounts of inventory.
IMPLEMENT AND MONITOR the operating plan that works best in simulations. The data for products, facilities, vehicles and routes contained in the supply chain model that produces the best simulation results defines the operating plan for the next 15 – 30 days. When the operating plan is put into action, data from daily supply chain operations is used to continually update the supply chain model. And, as shown in the screenshots below, this updated data drives new simulations to show how well the supply chain will continue to work in the coming days and weeks.
As events unfold and situations change, use the five step M&OP to continue to monitor and modify the supply chain that supports the mission. Unexpected events occur often in disaster response situations. Being able to adapt quickly and respond effectively to unexpected events is a big part of insuring the success of the mission. For ideas on how to expand this supply chain see “Tips for Building Supply Chain Models” for useful techniques.
MISSION REPORTING TEMPLATE — The operations report shows facility and product detail, and the dashboard shows where the best opportunities are for improvement. You can download a copy of the mission reporting template here. Be sure to read the instructions in “Analyzing Simulation Data” to understand how to use the reporting templates.
[If you are using SCM Globe Professional version, mission reports can be generated automatically by clicking on the “Generate P&L Report” button on the Simulate Screen]
To share your changes and improvements to this model (json file) with other SCM Globe users see “Download and Share Supply Chain Models”
CREATE A SHORT EXECUTIVE BRIEFING — a 3 to 5 page report or a short deck of presentation slides. Use screenshots and data produced by simulations to illustrate what you learned. Here are some points to include in your report:
- Show how you applied the M&OP process to organize the data and define your supply chain model.
- Show how you used simulation results to adjust the initial supply chain model so that the supply plan meets the needs defined in the demand plan.
- Present your filled in M&OP worksheets for the demand plan and the supply plan as an appendix to your briefing.
- What ideas do you have for improving the performance of a disaster response supply chain such as this?
Five-step M&OP process summarized in concise 15-slide presentation:
THIRD CHALLENGE:
Use M&OP with Simulations for Online Mission Planning
Test your geographically dispersed team’s ability to respond quickly to unexpected situations by cycling through the M&OP process. The challenge is for you and the other people in this online exercise to respond to new developments as the DR mission progresses, and do so in an effective and timely manner. You and your team have just gotten this news:
- In the midst of recovering from the first earthquake, a second earthquake hits and product demand increases by 50 percent at the Dhading and Babare warehouses.
- Two new local warehouses with the same size and product demands as Babare also need to be set up and supplies delivered to them.
- The first one is in the town of Urleni north of Kathmandu, and the second is in the city of Pokhara northwest of Kathmandu.
- Lives are at stake, people are waiting for your directions on how to proceed…
Do this exercise online with people organized into teams for Demand Planning (the Operations team – G3) and Supply Planning (the Logistics team – G4) . People on each team can represent different organizations (Governmental, NGO, Military, and Commercial). The Demand Team represents aid workers at the disaster sites, and the Supply Team represents logistics people who deliver what aid workers need. Team members participate online from geographically dispersed locations. One person plays the role of Mission Director who coordinates collaboration between teams in order to generate group consensus, and produce a new supply chain operating plan.
STRUCTURE AND TIMELINE FOR ONLINE TRAINING EXERCISE
Teams practice working together to update mission logistics plans to respond to changes in the mission. Participants in this exercise should work through the first two challenges in this case study before attempting this third challenge. Participants should also be familiar with techniques in the “Tips for Building Supply Chain Models” section.
PRIOR TO START OF ONLINE EXERCISE: Mission Director prepares the updated CONOPS document and sends it out to all participants. Mission director also creates and sends out the new supply chain model (.json file) that goes with this CONOPS. Build on a supply chain model that comes from work on the first two challenges in this case. The new model shows initial definitions and placement of new facilities (Urleni and Pokhara warehouses). It has data for already existing facilities, vehicles, and delivery routes, but product demand at new facilities is set to zero, and data for new vehicles and routes are not provided. Those numbers will be filled in by the Demand Team and Supply Team.
Upon receipt of the updated CONOPS and accompanying supply chain model, participants on the Demand Team (G3) and the Supply Team (G4) load the supply chain model and confer among themselves to create new demand plans and supply plans based on the information just received. The Demand Team updates their copy of the supply chain model to reflect their estimates for the categories of products needed, and the demand for those products at facilities. Supply Team makes an initial assessment of vehicles and delivery routes that will be needed. Teams do the best they can with information available. Questions will arise that can only be answered by others during the online portion of the exercise. Teams should take about 30 minutes for this preparation activity.
TOTAL TIME OF ONLINE EXERCISE: 90 Minutes. Tight timeline for the online exercise emphasizes the need for quick decision making in disaster response situations!
START OF EXERCISE: Participants log into online web conference where everyone can see the Mission Director’s computer screen which is showing the existing supply chain as illustrated in the diagram below. 
The design for this real-time logistics collaboration platform is presented in our article, “Massively Multiplayer Disaster Response Collaboration“, published by the U.S. Indo-Pacific Command (INDOPACOM) Center for Excellence in Disaster Management, Liaison Journal, Volume 13, Issue 2, Dec 2021. The article starts on pg. 66; view it online or download a PDF copy here – https://drive.google.com/file/d/1K81ShvL7gmvl1XBtVKpPR-1HdOq1VtkQ/view?usp=sharing
EXERCISE ACTIVITY SEQUENCE
1. MISSION DIRECTOR presents updated CONOPS — Mission Director guides teams through the exercise starting with an introduction of the new CONOPS, and answering some initial questions from team members. Screen sharing is then turned over to the Demand Team.
(5 – 10 minutes)
2. DEMAND TEAM updates products and facilities to reflect new demand — Demand Team (G3) loads the initial supply chain model they received from the Mission Director. The model is updated with Demand Team estimates of product demand at different locations based on the new CONOPS. People on the Demand Team seek further answers to questions related to products and demand forecasts. A person on the Demand Team updates the model as needed for products and facilities. That person then downloads a copy of the updated supply chain model and sends it to all other people on the call.
(10 – 15 Minutes)
3. SUPPLY TEAM specifies vehicles and delivery routes to meet new demand — The Supply Team (G4) loads the updated supply chain model received from the Demand Team and displays it on screen. Supply Team members ask questions of the Demand Team and Mission Director as needed. A person on the Supply Team enters proposed updates for vehicles and delivery routes. And then runs the updated model in simulation; everyone can see the results. This is the start of a collaborative process of exploring options and finding ways to deliver the supplies needed at each facility.
(10 – 15 Minutes)
4. MISSION DIRECTOR guides this collaborative process — Mission Director keeps discussions focused and relevant, and oversees rapid modeling and simulation of different supply chain options. A person on the Supply Team shares their screen, makes updates to the model, and runs simulations. The simulations find mismatches between the demand plan and the supply plan. Simulations show where products run out, and where too many products accumulate. People discuss and explore options to deliver products needed to meet facility demands, and keep the supply chain running for 15+ days.
Mission Director challenges the demand team to refine their product demand estimates, and challenges the supply team to find ways to lower transportation and operating costs while still meeting facility demands. A Supply Team member continues to update the supply chain model as people suggest changes, and runs simulations. Everyone can see what works best. People pick the best ideas and reach agreement on a new operating plan. The updated supply chain model that runs best in simulations becomes the new operating plan. It specifies product demands at each facility, and shows how products will be delivered to those facilities to meet their demands. A copy of the updated model is downloaded and sent to all participants. Everyone can see what needs to be done and understands why – they have situational awareness.
(20 – 30 Minutes)
5. EXERCISE DEBRIEFING
- Where did problems and delays occur that slowed down the process?
- What could be done to improve the process?
- What worked well and why did it work well?
- How could a process like this improve operations and outcomes in real DR missions?
(10 – 20 Minutes)
This exercise illustrates use of commercial off-the-shelf (COTS) technology to create an online collaboration platform that all parties can easily access and use. It uses simulations to drive supply chain planning, and provides training for organizations to learn to work together in disaster response situations. When disaster events do occur, a collaboration platform like this one enables everyone to see what is happening, and see which courses of action work best. That means consensus will emerge more quickly, which drives more focused and effective action from all parties to deliver greater mission success.
** NOTE: The design for this real-time logistics collaboration platform is presented in our article, “Massively Multiplayer Disaster Response Collaboration“, published by the U.S. Indo-Pacific Command (INDOPACOM) Center for Excellence in Disaster Management, Liaison Journal, Volume 13, Issue 2, Dec 2021. The article starts on pg. 66; view it online or download a PDF copy here – https://drive.google.com/file/d/1K81ShvL7gmvl1XBtVKpPR-1HdOq1VtkQ/view?usp=sharing
[ We are glad to provide free evaluation accounts to instructors, students and supply chain professionals interested in exploring SCM Globe simulations — click here to request an account — Get Your Free Trial Demo ]
Register on SCM Globe to gain access to this and other supply chain simulations. Click the blue “Register” button on the app login page, and buy an account with a credit card (unless you already have an account). Scan the “Getting Started” section, and you are ready to start. Go to the SCM Globe library and click the “Import” button next to this or any other supply chain model.