Simulation in the Supply Chain

This executive briefing is an introduction to the technology of computer simulation for middle and senior management in the logistics, distribution and warehousing industries. It outlines capabilities and potentials at several levels and may also be of use to sales and marketing personnel. Simulation technology is defined and explained. Hardware and software requirements are reviewed and a brief history of simulation is presented along with examples of past successful use. Then, with reference to the supply chain and the warehousing industry, possible uses of simulation are detailed in several modalities (purposes) and at several levels. The benefits of simulation as an analytical tool are reviewed, followed by a section that describes industrial lessons learned from failed simulation projects and the requirements for success that emerge from those lessons. The briefing concludes with a short foray into the possible future of the technology.