Discrete event simulation as a decision tool: a cost benefit analysis case study

ABSTRACT

This paper proposes a decision support strategy using in synergy Discrete Event Simulation (DES) models with the Cost–Benefit Analysis (CBA), to support investments for improving efficiency and turnover of logistic systems such as ports. The system of interest is described using the Unified Modelling Language, and then it is modelled, simulated, and validated in a simulation environment. The outputs of the DES are used in the formulas of the CBA to make decisions not only based on the logistic performance indicators but also on the costs and environmental benefits. The proposed approach is applied to a case study describing the port of Bari, in southern Italy. The results highlight how the facility processes are affected by some internal variables, like traffic congestions and trucks managing policies. DES is used to evaluate and test some new policies and scenarios, considering different inbound trucks arrival, increasing equipment and human resources. Using the outputs of the simulations, the investment priorities are evaluated by the CBA support.

KEYWORDS:

• Discrete event simulation
• cost–benefit analysis
• port logistics

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1. Autorità di Sistema Portuale del Mare Adriatico Meridionale, “PIANO OPERATIVO TRIENNALE 2020–2022”.

2. The “feasibility study” cost includes the process study, the “on-field” data acquisition and elaboration, the process simulation and validation, the bottlenecks’ identification, the cost analysis and scenarios implementation, the economic study through the balance sheets analysis, the macro-economic background forecast, and the solutions feasibility study and simulations.

3. https://www.statista.com/statistics/267908/inflation-rate-in-eu-and-euro-area/(last check 09/11/2021).

Additional information

Funding

The work was supported by the Smart Cities and Communities and Social Innovation Decreto Direttoriale 5 luglio 2012 n. 391/Ric. ASMARA Project [SCN 00569].