Lean distribution assessment using an integrated framework of value stream mapping and simulation

Abstract

Distribution centers play a critical role in maintaining supply chains efficiency, flexibility, and reliability. Given the limited financial and physical resources of today's businesses, distribution enterprises have be-gun to embrace the far-reaching value of lean paradigm. Value Stream Mapping (VSM) is prescribed as a part of lean implementation portfolio of tools. It is employed to visually map value streams' material and information flows seeking to identify the sources of waste and non-value added activities. Integrating simulation with VSM introduces a whole new dimension for lean implementation and assessment processes given its ability to dynamically model systems complexity and uncertainty. This paper shows a value stream mapping-based simulation framework that is used to assess two basic lean distribution practices, pull replenishment and class-based storage policy, of a tire distribution company.