Supply Chain Simulation Methods

One of the most costly and difficult parts of a business to manage is the supply chain. Effectively managing a complex, global supply chain has a positive impact on a company´s financial performance. By using simulation, managers are able to create a model of their supply chain systems and test various levels of input that can emulate real-life inconsistencies. This paper mentions different types of simulation for supply chain management and describes main characteristics of them. Each simulation type should be applied, depends on the type of managerial question to be answered by the model. This paper explains how different types can answer different questions in SCM or may have better results in some special conditions