Benefits of using a supply chain simulation tool to study inventory allocation

Using Simulation Dynamic´s Supply Chain Builder, a supply chain tool has been developed to study alternative inventory allocations in a network. The supply chain being modeled is a nationwide food production and distribution network. The company produces thousands of product lines and is studying the best strategies for allocating production to distribution centers to avoid overproduction and cross shipments of product. This paper describes the data needs and logic of this simulation tool along with its effectiveness in comparing strategies for locating SKU inventory in a supply chain.