Supply Chain Simulation in 6 Easy Steps

Supply chain simulations are usually so complicated only a few experts know how to use them. But SCM Globe simulations are both easy and accurate. That makes them useful to a wide audience of academic, professional and business people. Anyone wishing to teach about supply chains, or analyze the operations of real supply chains or design new ones can use these simulations.

Accurately define any supply chain with just four types of entities: 1) Products; 2) Facilities; 3) Vehicles; and 4) Routes. Combinations of these four entities can model any supply chain anywhere in the world. Then run that model in simulations and see how well it performs.

[ We are glad to provide a free evaluation account to instructors, students and supply chain professionals interested in exploring SCM Globe simulations — click here to Get Your Free Trial Demo ]

Build your supply chain model using the four entities. As you create instances of the entities in Steps 1, 2 and 3 you drag and drop the resulting icons to place them on a smart map (Google Maps). Place them where they actually are in real supply chains, or where you want them to be in new supply chains. This creates a mathematically rigorous model (but we shield you from having to deal directly with all the equations).

Then run that model in simulations and see how well it performs. In Steps 4, 5 and 6 the simulations find points of failure and provide data needed to analyze the problems and find ways to fix them. Zoom in on particular areas of interest. Keep improving your supply chain design based on simulation results. Use the simulation data to create monthly Profit & Loss Reports and KPIs to compare the performance of different supply chain designs. Pick the design that works best in simulations. It will work best in the real world too.

You can download a copy of these slides from SlideShare. And you can see examples of commercial, humanitarian, and military supply chain models and simulations in our online library of case studies.

Supply Chain Modeling and Simulation in 6 Easy Steps from Michael Hugos

INSTRUCTORS — Combine simulations with lectures and readings to increase student engagement and knowledge retention

CONSULTANTS — Use simulations to analyze real supply chains and explore new options with clients and colleagues

Here’s a short video of a supply chain simulation based on a real company in one of our case studies, S&J Trading Company – Angola