Simulation as an Aid in Decision Making at Israel Fertilizers and Chemicals

A case study is presented of the development of a simulator for phosphate processing in the course of which there was mutual feedback between the authors and the company. The problem facing the company was how much and where to invest to increase the overall productivity under changing circumstances. Due to the dynamic nature of the problem and the intricate interrelation between transporting, storage, production segments, and sales, simulation was chosen as the analyzing tool.

The development process consumed 1,450 man-hours, with an $800 computer bill. The simulator was applied in decisions involving nearly $1 million (2% of the yearly sales). One of its recommendations has been actually checked and found to lead to a saving of $60,000 per annum.