Gartner Research

Combine Simulation and Optimization for More Effective Supply Chain Modeling

Published: 09 July 2014

ID: G00262328

Analyst(s): Noha Tohamy

Summary

Simulation and optimization are two common techniques in predictive and prescriptive analytics. Using the two techniques together offers supply chain leaders the best of both worlds: a recommended course of action based on a more accurate understanding of uncertainty in the supply chain.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Consider an Analytics Capability That Combines Simulation and Optimization
    • Deterministic and Stochastic Optimization as Examples of Prescriptive Analytics
    • Deterministic and Stochastic Simulation as Examples of Predictive Analytics
    • The Evolving Need for Simulation Capabilities
    • Which Is Better, Simulation or Optimization?
    • Adopt a Simulation Optimization Approach for Better Supply Chain Analytics Results
  • Know Your Analytics

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