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Simulation modelling challenge of transportation logistics systems

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  • Olli-Pekka Hilmola
  • Lauri Lättilä

Abstract

Simulation has been used in operations management discipline for decades, but applications in transportation logistics have been rather scarce. Situation is the same in rapid modelling sub-branch. This is mostly due to the reason of needs in high computing power, sophistication of artificial intelligence, and integration of other data sources to the simulation models. However, with ever increasing global trade and derived transportation needs, economically and ecologically sustainable solutions are sought for. We illustrate challenges in this branch with two agent-based simulation models and with one system dynamics model. These are all based on real life observations and data. Complexity and time of model building is likely to increase with this stated problem area, but rapid modelling part is enabled with different scenarios, optimisation and Monte Carlo features during simulation run, but also with feature to put models online to internet and enable significant user interaction.

Suggested Citation

  • Olli-Pekka Hilmola & Lauri Lättilä, 2013. "Simulation modelling challenge of transportation logistics systems," International Journal of Business Information Systems, Inderscience Enterprises Ltd, vol. 14(4), pages 429-442.
    • Handle: RePEc:ids:ijbisy:v:14:y:2013:i:4:p:429-442
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