Using simulation to analyze supply chains

Supply chain management, the management of the flow of goods or services from materials stage to the end user, is a complex process because of the level of uncertainty at each stage of the supply chain. Computer simulation, because it can be applied to operational problems that are too difficult to model and solve analytically, is an especially effective tool to help analyze supply chain logistical issues. While most engineers have had some exposure to the tools and technology of computer modeling and simulation, the use of simulation for supply chain analysis has not been prevalent until recently. The software tool, Supply Solver, was developed in an effort to provide supply chain solutions using simulation as the foundation. The goal is to show how discrete-event simulation is used to analyze supply chain processes. The paper also demonstrate what some of the considerations are in using Supply Solver to help solve supply chain design problems