Simulation as a support tool in supply chain management

Abstract

The project “Simulation as a Support Tool in Supply Chain Management” is a diagnostic project with a descriptive investigation method that covers the scope from 1998. During this period, simulation has acquired a large attention as a complementary technique in supply chain management research, due to complexities and uncertainties that rule it. The technological level involved in this field is the cornerstone to achieve a feasible application, considering a high number of agents and entities with several interrelationships among them. Meanwhile, methodologies have been developed to adapt previous types of simulation to current needs in the decision support process for designing and controlling supply chains. In fact, this project exposes different simulation approaches looking forward to understand how these apply and also to present the limitations still to overcome. After presenting the main simulation approaches used in SCM, there will be a special focus on the discrete event simulation (DES), taking into account a case study where the complexity and benefits of simulations are proved, and integrating iterative models of optimization and simulation. Its contribution to the sector and the university lies in wide and detailed information about the actual state of art of simulation as a support tool in the managing of the supply chain, remarking benefits and opportunities coming from its application. Also, the case study is created in order to apply the knowledge acquired through the whole investigation process. Conclusions are significant in a way to provide a deep understanding on how simulation could significantly influence the operative performance of the supply chain and to comprehend the enormous opportunities of applying it in an organization.