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Supply Chain Simulation: A Survey


Author Info

  • Kleijnen, J.P.C.

    (Tilburg University, Center for Economic Research)


This paper provides a survey of simulation in supply chain management.It reviews four types of simulation, namely spreadsheet simulation, system dynamics, discreteevent simulation, and business games.Which simulation type should be applied, depends on the type of managerial question to be answered by the model.Moreover, this paper summarizes novel sensitivity and robustness analyses.This sensitivity analysis yields a shortlist of the truly important factors in large simulation models with (say) a hundred factors.The robustness analysis optimises the important factors controllable by management, while accounting for the noise created by the important non-controllable, environmental factors.Both analyses are illustrated by a case study involving the simulation of a supply chain in the mobile communications industry in Sweden.In general, simulation is important because it may support the quantification of the benefits resulting from supply chain management.

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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2003-103.

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Date of creation: 2003
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Handle: RePEc:dgr:kubcen:2003103

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Keywords: simulation; logistics; performance measurement; risk analysis; uncertainty; bifurcation; supply chain management;

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Cited by:
  1. Shi, W. & Kleijnen, Jack P.C. & Liu, Zhixue, 2013. "Factor Sreening For Simulation With Multiple Responses: Sequential Bifurcation," Discussion Paper 2013-009, Tilburg University, Center for Economic Research.
  2. Potter, Andrew & Yang, Biao & Lalwani, Chandra, 2007. "A simulation study of despatch bay performance in the steel processing industry," European Journal of Operational Research, Elsevier, vol. 179(2), pages 567-578, June.


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