Application Case 6.8 Cosan Improves Its Renewable Energy Supply Chain Using Simulation Introduction to a Simio brief, "Over the course of three months, Cosan is a Brazil-based conglomerate that operates received hands-on training and modeling assistance newly hired engineers collected data in the field and globally. One of its major activities is to grow and from Paragon Consulting of San Palo." process sugar cane. Besides being a major source of To model agricultural operations to analyze the sugar, sugar cane is now a major source of ethanol, a main ingredient in renewable energy. Because of sugar cane's postharvest journey to production mills, the model objectives included details of the fleet of the growing demand for renewable energy, ethanol production has become such a major activity for road transport sugar cane crop to Unity Costa Pinto, Cosan that it now operates two refineries in addition the actual capacity of reception of cane sugar mills, bottlenecks and points for improvement in the flow to 18 production plants, and of course, millions of hectares of sugar cane farms. According to recent of CCT (cut-load-haul) of cane sugar, and so on. data, it processed over 44 million tons of sugar cane, The model parameters are as follows: produced over 1.3 billion liters of ethanol, and pro- Input Variables: 32 duced 3.3 million tons of sugar. As one might imag Output Variables: 39 ine, operations of this scale lead to complex supply Auxiliary Variables: 92 chains. So the logistics team was asked to make rec Variable Entities: ommendations to the senior management to Input Tables: 19 Determine the optimum number of vehicles Simulated Days: 2:10.Ist season) required in a fleet used to transport sugar cane Number of Entities: 12 C10 harvester composi- to processing mills to preserve capital. tional types for transport of sugar cane) Propose how to increase the actual capacity of sugar cane received at the sugar mills. Results/Benefits Identify the production bottleneck problems to Analyses produced by these Simio models provided solve to improve the flow of sugar cane. a good view of the risk of operation over the 240- Methodology/Solution day period due to various uncertainties. By analyz- ing the various hottlenecks and ways to mitigate The logistics team worked with Simio software and those scenarios the company was able to make bet . I, processo OVCI TATITTON LOTIS Ursugar cane, produced over 1.3 billion liters of ethanol, and pro Input Variables: 32 duced 3,3 million tons of sugar. As one might imag. Output Variables: 39 ine, operations of this scale lead to complex supply Auxiliary Variables: 92 chains. So the logistics team was asked to make rec Variable Entities: 8 ommendations to the senior management to: Input Tables: 19 Determine the optimum number of vehicles Simulated Days: 240 (1st season) required in a fleet used to transport sugar cane Number of Entities: 12 (10 harvester composi- to processing mills to preserve capital. tional types for transport of sugar cane) Propose how to increase the actual capacity of sugar cane received at the sugar mills. Results/Benefits Identify the production bottleneck problems to Analyses produced by these Simio models provided solve to improve the flow of sugar cane. a good view of the risk of operation over the 240- day period due to various uncertainties. By analyz- Methodology/Solution ing the various bottlenecks and ways to mitigate The logistics team worked with Simio software and those scenarios, the company was able to make bet built a complex simulation model of the Cosan sup ter decisions and save over $500.000 from this mod ply chain as it pertains to these issues. According elig effort alone . 1. Read the application case 6.7 "Simulating Effects of Hepatitis B Interventions" on page 353 of your textbook. 2. Describe one advantage and disadvantage of OR methods like the one described. Provide a thorough description. Application Case 6.8 Cosan Improves Its Renewable Energy Supply Chain Using Simulation Introduction to a Simio brief, "Over the course of three months, Cosan is a Brazil-based conglomerate that operates received hands-on training and modeling assistance newly hired engineers collected data in the field and globally. One of its major activities is to grow and from Paragon Consulting of San Palo." process sugar cane. Besides being a major source of To model agricultural operations to analyze the sugar, sugar cane is now a major source of ethanol, a main ingredient in renewable energy. Because of sugar cane's postharvest journey to production mills, the model objectives included details of the fleet of the growing demand for renewable energy, ethanol production has become such a major activity for road transport sugar cane crop to Unity Costa Pinto, Cosan that it now operates two refineries in addition the actual capacity of reception of cane sugar mills, bottlenecks and points for improvement in the flow to 18 production plants, and of course, millions of hectares of sugar cane farms. According to recent of CCT (cut-load-haul) of cane sugar, and so on. data, it processed over 44 million tons of sugar cane, The model parameters are as follows: produced over 1.3 billion liters of ethanol, and pro- Input Variables: 32 duced 3.3 million tons of sugar. As one might imag Output Variables: 39 ine, operations of this scale lead to complex supply Auxiliary Variables: 92 chains. So the logistics team was asked to make rec Variable Entities: ommendations to the senior management to Input Tables: 19 Determine the optimum number of vehicles Simulated Days: 2:10.Ist season) required in a fleet used to transport sugar cane Number of Entities: 12 C10 harvester composi- to processing mills to preserve capital. tional types for transport of sugar cane) Propose how to increase the actual capacity of sugar cane received at the sugar mills. Results/Benefits Identify the production bottleneck problems to Analyses produced by these Simio models provided solve to improve the flow of sugar cane. a good view of the risk of operation over the 240- Methodology/Solution day period due to various uncertainties. By analyz- ing the various hottlenecks and ways to mitigate The logistics team worked with Simio software and those scenarios the company was able to make bet . I, processo OVCI TATITTON LOTIS Ursugar cane, produced over 1.3 billion liters of ethanol, and pro Input Variables: 32 duced 3,3 million tons of sugar. As one might imag. Output Variables: 39 ine, operations of this scale lead to complex supply Auxiliary Variables: 92 chains. So the logistics team was asked to make rec Variable Entities: 8 ommendations to the senior management to: Input Tables: 19 Determine the optimum number of vehicles Simulated Days: 240 (1st season) required in a fleet used to transport sugar cane Number of Entities: 12 (10 harvester composi- to processing mills to preserve capital. tional types for transport of sugar cane) Propose how to increase the actual capacity of sugar cane received at the sugar mills. Results/Benefits Identify the production bottleneck problems to Analyses produced by these Simio models provided solve to improve the flow of sugar cane. a good view of the risk of operation over the 240- day period due to various uncertainties. By analyz- Methodology/Solution ing the various bottlenecks and ways to mitigate The logistics team worked with Simio software and those scenarios, the company was able to make bet built a complex simulation model of the Cosan sup ter decisions and save over $500.000 from this mod ply chain as it pertains to these issues. According elig effort alone . 1. Read the application case 6.7 "Simulating Effects of Hepatitis B Interventions" on page 353 of your textbook. 2. Describe one advantage and disadvantage of OR methods like the one described. Provide a thorough description