Simulation model of the logistic distribution in a medical oxygen supply chain

Research activities on operations management in the last years are always more dedicated to supply chain and logistics optimization models. The study belongs to this branch and describes the problems related to a re-configuration of the distribution net in a company that produces medical oxygen cylinders for Italian market. The enterprise is particularly sensible to the optimization of supplying processes due to the characteristics of its product, as any delay in the delivery could create dangerous health situation for patients. The work has the objective to realize a software for supply chain management that could be a decision support system, analyzing strategic impacts that changes in distribution system create. In details, the model shows the differences in service level in case of closing one or more factories and the relative necessary changes in logistics net. The paper is articulated in the following parts: • analysis of company and construction of simulation model; • study of classic operation research techniques to solve dynamic vehicle routing problems; • description of possible scenes derived by strategic decision in closing factories; analysis of experiments and global conclusions and developments.