Gartner Research

The Role of Simulation and Optimization in Supply Chain Modeling and Design

Published: 26 September 2011

ID: G00219019

Analyst(s): Noha Tohamy

Summary

With increasing demands on supply chains, the need for sophisticated modeling techniques is growing. Combining simulation and optimization techniques promises a more-realistic representation of a complex supply chain, and tests the feasibility of implementing a solution to meet business goals.

Table Of Contents
  • Overview

Analysis

  • Optimization Modeling: Deterministic or Stochastic
  • Simulation Modeling: Deterministic or Stochastic
  • Supply Chain Modeling Needs Outgrow Traditional Optimization Solutions
  • Which Is Better, Simulation or Optimization? A Combination Is Best
    • Example 1: Meeting Customer Requirements in the Distribution Network
    • Example 2: Respecting Drivers' Needs in the Transportation Network
  • Companies Should Take the Necessary Measures to Ensure Adoption and ROI

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