Simulation in supply chain management has many goals and one of them is to evaluate the performance and how to increase it by means of applying an effective managing of a complex supply chain. Stimulation through visualizing, analyzing and understanding the dynamics of the supply chain can assists managers to make decisions.
In this paper, I will provide an analysis of using stimulation for different processes. The Beer Distribution Game will be used as an example of the Business game model to provide a clear picture for the simulation techniques used in supply chain management. I will explains the advantages of utilizing the Beer Distribution Game and discusses ways in which it can be beneficial in teaching operations concepts to undergraduate students and business people.
I will use the model of supply chain operation
…show more content…
Introduction
As a definition to supply chain management, Makris stated, “a company’s supply chain comprises geographically dispersed facilities, where raw materials, intermediate products, or finished products are acquired, transformed, stored, or sold and the transportation links that connect facilities along which the products flow.”
Simulation is often used in compare to the other quantitative models that seems to be the only better one to model performance measurement. Simulation, before implementation, allows the design of best decisions and their evaluation in supply chain management. Different businesses can understand the factors that affect their system, evaluation of ambiguity problems, decisions analysis, risks management, and future projects planning through the use of supply chain simulation software, for instance. Therefore, according to Tarokh and Golkar, simulation is used to assist decision making at:
- The tactical level and operational level, including setting the values of control policies, scheduling, shop floor management.
- The strategic level, including designing and redesigning a supplier selection, supply