Lesson 1 Flashcards
What is Supply Chain Simulation?
It involves creating and operating a model that accurately represents a supply chain.
Which two models are used in simulations?
Analytical models and simulation models
What are the reasons for using Supply Chain Simulation?
- Simulation allows us to mimic real-world supply chain in a risk-free environment.
- Helps us to identify bottlenecks, optimize production schedules, and ensure efficient resource utilization
What is analytical models?
- Provide clear solutions and help assess how changes in inputs affect outcomes.
- Can find the best (optimum) solution.
- May use unrealistic assumptions and involve complex math.
What is Simulation models?
- Can represent very complex systems.
- Validating the model to match real-world systems can be difficult.
What is Hybrid approach?
Combines the strengths of both methods—analytical for optimal solutions, simulation for realism but requires advanced knowledge of both techniques, making it harder to use than simulation alone.
Why is simulation popular?
- Does not need advanced mathematical knowledge.
- Widely used in supply chain analysis to measure multiple performance indicators like service levels, inventory, and sales
What are the characteristics of a simulation model?
- Quantitative, computer-based, and involves equations over time.
- Tracks how outputs change over time based on input values.
- Provides insights through sensitivity analysis but doesn’t give a single solution.
What are the objectives of Supply Chain Simulation?
- Generating Knowledge: Use simulation to understand supply chain processes and key challenges.
- Developing Improvements: Simulate scenarios to explore possible improvements (what-if analysis).
- Testing Alternatives: Test decision-based options to assess optimization and robustness without disrupting the real supply chain.
- Quantifying Benefits: Help measure the benefits of supply chain management for decision-making at strategic, tactical, and operational levels.
What is Supply Chain Network Design?
- Focuses on designing and configuring the network’s nodes.
- Simulation helps evaluate alternative network scenarios, optimizing distribution routes, and warehouse locations
What are some simulation problems for supply chains?
- Validation and Verification: Ensures the simulation model accurately represents the real supply chain.
- Sensitivity or What-If Analysis: Identifies the most important factors influencing the supply chain.
- Optimization: Focuses on finding the best settings for critical control factors.
- Robustness and Uncertainty Analysis: Examines how well the supply chain performs under unpredictable environmental changes.
That are some techniques for Supply Chain Simulation?
- Local Simulation: The most common type, run on one computer.
- Parallel Simulation: Uses multiple processors to run parts of a simulation at the same time. Helps speed up large simulations.
- Distributed Simulation: Runs simulations on computers connected by a network, often in different locations.
- Distributed and Parallel Simulation: Combines both methods, running multiple models on different computers or processors together.
