Supply Chain Analytics - Simulation
Author: Descreye Solutions
How can simulation be used in supply chain analytics?
Simulation is an important tool in the analysis of supply chains. Simulations can provide more accurate forecasts, provide a better method for safety stock calculations, improve systems within the supply chain, and optimize logistics strategies. Unlike many other analytical techniques simulation does not ignore or inappropriately simplify that the variability that is inherent in every supply chain. By modeling that variability simulation can provide a more realistic methodology for understanding and improving a supply chain.
Where is simulation currently used in supply chains?
The following is a list of some of the more common uses for simulation in supply chain analytics:
Improving manufacturing operations
Optimizing logistics routes
Calculating safety stock in warehouses
Estimating customer demand
Forecasting production capability
Predicting quality issues
Organizations are constantly enlarging the role of simulation in supply chain analytics, as it is providing insights and capability that gives them a competitive advantage in the market.
What simulation tools are used for supply chain analytics?
There are many tools (including OPS) that are used for simulating in supply chain analytics. Discrete event simulation is a common subset of simulation tools that is used for supply chain analytics. Below is a link to a wikipedia page with a list of discrete-event simulation software.
List of discrete event simulation software
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