Simulation Analysis Of The Path Cost Of Production Logistics System

As the awareness of saving production logistics cost which can generate bigrevenues for enterprise and society to be enhanced, there is growing concern aboutcontrolling the cost. Logistics cost become the third profit fountainhead after themeans of production and labour power. The production logistics activities isthroughout the entire production process. Production logistics system is one of the keyfactors for core competence in enterprise. It will consider to be hold an importantposition in enterprise, regardless of the technical and economy. It becomes animportant indicator of competitive capacity in some fields for the enterprise or thevocation, no matter how advanced and reasonable. Researching production logisticscost has a very important significance in reducing business costs, improving theeconomic efficiency of enterprises, and even the overall competitive of the supplychain. In fact, the real processing time in a period of production is shorter than that oflogistics activities. Thus, the potential of researching production logistics system andsaving costs will have a far-reaching impact on the enterprise.This paper describes the status of production logistics and the application ofWitness simulation software, it also summarizes the conception, procession, andfeature of production logistics. By analysis of production logistics activities inenterprise, it plans production logistics system, which achieves the purpose ofreducing logistics cost. Using Witness simulation system, it is simulate modeled in themanufacturing process of the A auto enterprise. It records the statistic report of eachmachine and path after the mode is working successfully, which provides the basis fortheir active state and operation efficiency. In order to analyze the path cost ofproduction logistics, the author adds cost value varied with time. In a specified time, itcan figure out the logistics costs in the whole process. According to analyzing data ofmode, people can optimize model for the purpose of increasing the productionlogistics speed and decreasing the costs.It is the important method of researching modern logistics by analyzing andoptimizing the path cost in production logistics with simulating technology oflogistics system.