Modeling issues in a shipping system

We describe the application of simulation and statistical analyses to the improvement of a shipping and distribution system supporting a component-fabrication plant and two automotive assembly plants interconnected by truck lines and railroads. These analyses enabled managers to determine the number and location of loading docks required, optimize the inventory level and distribution of racks (containers) circulating throughout this shipping system, determine the sizes of turnaround areas for truck and rail cargo at each plant, and predict annual truck and rail shipping volumes and costs.