Improving a Biological Extracts Company’s Cash Cycle by Simulating Discrete Events: First Steps Towards Designing a Digital Twin
Journal
IFAC-PapersOnLine
ISSN
2405-8963
Publisher
Elsevier BV
Date Issued
2025
Author(s)
Jarquin-Segovia, Ricardo
Marmolejo-Saucedo, José Antonio
Type
text::journal::journal article
Abstract
Companies with consistently positive cash cycles tend to outperform those with negative cycles, which struggle to cover operational and capital expenses. This study focuses on a Mexican company facing financial liquidity challenges due to a high investment in finished product inventory and an 80-day cash conversion cycle, with 73 days tied to inventory. Using discrete event simulation and digital modeling, the production process of fluid extract was analyzed to identify inefficiencies and propose improvements. The simulation, conducted with Anylogic software, revealed significant delays in the percolation operation, contributing to a 20-day production process and substantial work-in-process inventory. This work lays the foundation for implementing a digital twin to evaluate real-time financial impacts of operational changes, ultimately improving the company’s financial performance. ©The authors ©IFAC-PapersOnLine ©ScienceDirect ©Elsevier.
License
Acceso Abierto
How to cite
Jarquin-Segovia, R., Marmolejo-Saucedo, J. A., & Rodriguez-Aguilar, R. (2025). Improving a Biological Extracts Company’s Cash Cycle by Simulating Discrete Events: First Steps Towards Designing a Digital Twin. IFAC-PapersOnLine, 59(10), 2310–2314. https://doi.org/10.1016/j.ifacol.2025.09.388