What is the role of simulation and modeling in supply chain optimization?

Simulation And Modeling Questions



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What is the role of simulation and modeling in supply chain optimization?

The role of simulation and modeling in supply chain optimization is to provide a virtual representation of the supply chain system, allowing for the analysis and evaluation of different scenarios and strategies. By simulating various aspects of the supply chain, such as inventory levels, production capacities, transportation routes, and demand patterns, modeling can help identify bottlenecks, inefficiencies, and potential areas for improvement. It enables decision-makers to test different optimization strategies, evaluate their impact on key performance indicators, and make informed decisions to enhance the overall efficiency, responsiveness, and profitability of the supply chain.