Supply Chain Simulation and Optimization Methods: An Overview

This paper reviews a simulation method in the context of supply chain management (SCM). SCM problem usually are complex and need some effective method like a simulation for modeling. This study focuses on simulation modeling and tools that have been discussed and practiced by previous researchers, practitioners and also academics. The used of simulation tools can be classified into three groups: spreadsheet simulation, simulation software package and simulation programming language. Simulation is the best practice to evaluate the system performance closely to real situation. However, simulation solely is not enough to achieve optimal result and need to corporate with optimization techniques which also discussed in this paper. The overviews of simulation optimization and its application in SCM fields are also addressed. Lastly, several suggestions for future research were stated in conclusion section.