INTRODUCTION TO SUPPLY CHAIN SIMULATION

Although a corporation does not own all of its supply chain, the entire chain is responsible for product delivery and customer satisfaction. As one of several methodologies available for supply chain analysis, simulation has distinct advantages and disadvantages when compared to other analysis methodologies. This tutorial will detail the reasons why one would want to use simulation as the analysis methodology to evaluate supply chains, its advantages and disadvantages against other analysis methodologies such as optimization, and business scenarios where simulation can find cost reductions that other methodologies would miss.