Logistics Management in the Chines Automotive Market

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Case Study 1: Improvement of logistics management in the chines automotive market a
case study of Shanghai Volkswagen Automotive Co. Ltd
In this case study, I have critically analyzed the global automobile market, with the main interest
on the sale on the Chinese market, which was confronted with the 2008 depression, which
resulted in a reduction in the purchasing power in the markets. Shanghai Volkswagen
Automotive Co. Ltd, which adopted the use of discrete-event simulation approach to managing
the market demand and manufacturing capacity to avoid wastage and overproduction
(Christopher 1998). The company uses a RENA software version 15 in managing its market. The
software uses the SIMAN processor and the simulation language. The firm was able to build an
experimental market model by putting various modules that represent the market segments and
the multiple activities happening in the market. The software puts the models together by the use
of the connector lines and indicates the flow of events in the market concerning market size and
the overall demand. The modules used to represent specific actions concerning product flow,
various market entities, and the timing processes.
This case study illustrates how event simulation is used in analyzing the market forces affecting
the industry, thus beneficial to the overall success of the company. Therefore, the market can be
examined and tested before exploring.
Research
Efficient market simulation is dependent on the computerized software system
This company is a joint venture between the Shanghai Automotive Industry Corporation (SAIC)
and the German Volkswagen Group, which was set up in 1984. The corporation share ratio is
Volkswagen Group 40%, Volkswagen Investment Company Ltd (China) 10%, and SAIC

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holding 50%. The contract of the corporation is valid until 2030. This joint venture has been
developed in china and has seen sales surpassing the six million-unit sales. Production unit
located in Shanghai and Jiangsu province.
To effectively utilize the market potential, the company joined the Chinese manufacturing joint
venture, which makes the firm enjoy a 15% tax relief, and this has helped the firm to save on the
market management costs and revenue deductions. Historically, to properly service the Chinese
market, companies were required a direct market logistics provision, which did not help the firm
meet its demands. This policy did not support the firm to achieve its goals, thus made the product
logistics a complicated and challenging process. Previously, the firm faced a challenge in
simulating its logistical activities.
Conclusion
ARENA simulation software is useful in building efficient software where various market
logistical models are tested and developed. This is critical to the firm in designing the
appropriate logistical strategies to manage the supply chain management effectively. This creates
a sense of belief in the management of the firm in ensuring the success of the firm in the market.
Case study 2: Discrete Event simulation Model in improving production and logistics of
GAC Toyota Motor Company
Toyota Company pays close attention to reducing its production material and labor. Stamping is
among the critically vital steps used in the production process; this is because nearly 70% of
parts produced in the facility is through the stamping process (Development Research Center of
The State Council. 2011). The stamping process in GAC Toyota has led to the reduction of the