Supply chain simulation with LOGSIM-simulator

Supply chain management has become one of the most important sources of competitive advantage in telecommunication equipment manufacturing during the 1990´s. The key to success in this dynamic business environment is the ability to introduce innovative, customized products with short time-to-market without sacrificing logistical efficiency. Supply chain simulation is a powerful analysis method for evaluating the tradeoffs between product customization and logistical efficiency. Simulation can be used to support decision making in both product design as well as in supply chain design. This paper describes how supply chain simulation has been used in Nokia. The basic elements of the supply chain simulation models developed at Nokia Research Center (NRC) are described and a special purpose simulator, LOGSIM, is introduced. Some experiences of using supply chain simulation in actual business cases are discussed and ideas on the future of supply chain simulation are presented