Discrete Simulation of Profit Made from Shipping Cargo

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Description

This model simulates the process of cargo shipments entering a port, purchasing the cargo, shipping the material to another port and then selling the material to be exported. Material moves through this system as discrete amounts with delays at each point. Delays are used for material handling and for transport. Material can be shipped via train or semi truck at different unit costs and load capacities.

Also, the cost of purchasing imported material and shipping material is accounted for. The sales revenue of exports is used to track the cash flow. Once per month, deposits are made to an investment fund to maximize profits. The model is run as a Monte Carlo simulation to determine the profits probabilistically.

Uncertainty is defined at the imports and exports to/from the ports and also the interest rate applied to the investment fund.

 

Making Better Decisions In An Uncertain World