A Simulation-Based Tool for Inventory Analysis in a Server Computer Manufacturing Environment

In this paper, we describe a simulation-based inventory management tool developed for the IBM Enterprise Server Group. Through the Web interface of the tool, an inventory manager is able to visualize Days of Supply (DOS) levels – current and projected, and to carry out what-if scenario analysis to identify potential opportunities for improve-ment. The highly complicated server manufacturing envi-ronment poses simulation modeling challenges such as two-stage fabrication/fulfillment process, multi-echelon bills-of-materials, complex server box configurations, part tests with random yields, stochastic lead times and so on. In the following sections, we will introduce the common characteristics of the server manufacturing environment, present the overall architecture of our tool, and describe the simulation model design and how we addressed those chal-lenges. At the end of the paper, we will show some results collected from the tool and point out our future research directions.