![]() In a mid-2015 survey of executives, more than three-quarters of respondents listed "geopolitical instability" as the leading risk to global growth. And that assumes an otherwise stable environment. Instead, consumption in much of the world seems increasingly likely to be weighed down by government and household debt burdens that now average 280 percent of GDP across advanced economies-and have reached 282 percent of GDP in China. The effects of China's population policies will likely be even greater, and arrive sooner: the country's total employment is forecast to start falling by 2024. Outside Africa and India, few countries show the type of population growth that historically produced consumption-boosting "demographic dividends." Indeed, some of the largest of the so-called emerging markets, including Brazil, Poland, and Thailand, have birthrates that have fallen below replacement levels. Demographics, for example, are no longer so consumption-friendly. Now these companies face a very different landscape. Just riding the crest brought the world's largest consumer packaged goods (CPG) manufacturers to new opportunities that seemed almost limitless. In the mid-2000s, economies in North America and Western Europe hummed, while a wave of fast-growing "new markets" supported even faster-growing middle classes from Bahia to Beijing. Procter & Gamble uses ExtendSim to model everything from soup to nuts.What a difference a decade makes.Major beverage retailer simulates product demand to optimize staffing levels at retail locations worldwide. ![]() end of process inspection in systems where the variation is often due to product mix, mean time to down times, and duration of down times instead of variation within the actual processing time. Students were asked to evaluate the cost and effectiveness of in process inspection vs. Since ConAgra is a heavy ExtendSim shop, they requested student teams use ExtendSim. ConAgra Foods reached out to the University of Idaho asking them to partner with them on a process improvement project.Simulation allowed them to find the optimal quantity of trucks to own, the quantity of hired trips, and the bundles transported by them (since it was paid by bundle and not for hired trip), and the prospective utilization level of the fleet. Among the more important requirements to be considered were: the capacity of the trucks, the maximum number of contacts in a route, the daily activity level - measured by the number of clients and the quantity requested by each client, and legal restrictions as the loading and unloading schedule allowed by the city. For a company focused in beverage distribution, simulation was used to calculate the size and profile of a fleet of trucks to serve retailers and supermarkets in the different areas of the Federal District.Plus, it helped the agrarian service experts explore options of operative modes to optimize the deployment of resources in this critical instance during the harvest. Simulation was used to assess the requirements of process design, equipment, and investment decisions. ![]() For one of the pioneers in 3rd-party agrarian services, ExtendSim was used to approach the operation of temporary grain storage in “silo bags” during the crop harvest. ![]() ![]() Among the variables comprised to achieve shorter cycle time were the modification of the truck schedules and the amount of docks needed for each vehicle category.
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