Simulation of refinery-supplier relationship

Abstract

The relationship between refinery and their supplier is an important issue to achieve the effective collaboration. Therefore, the refinery requires maintaining and evaluating a mutually beneficial relationship with supplier. The aim of this study is to evaluate a set of the performance attributes using discrete event simulation that supports the stakeholder for measuring the refinery-supplier relationship. This paper concentrates on analyzing four case studies on oil palm refinery in Malaysia. Then, measuring the performances is employed through the Arena simulation software. The finding shows that performance attribute of responsiveness and quality optimal to implement in push strategy than pull strategy. Indeed, simulation result shows that it supports the decision making process in evaluating the refinery-supplier relationship.