Improving supply chain efficiency through simulations - Literature and methodological review

Abstract

Increased competition, efficiency and profit orientation largely determine the operation of today’s companies. While the XX. In the twentieth century, the emphasis was on mass production, large batch numbers, and economies of scale, until today, consumer demand has shifted significantly toward individualized products and services. The consumer expects almost perfect quality, reasonable price and immediately available stocks. That is why it is necessary to tailor the supply chain to the needs of consumers as perfectly as possible. Every small change in the way a company operates can have different effects that managers need to respond to immediately.

In a company where there is some flow of auxiliary fuels, semi-finished or finished products, the proper design of the supply chain is a focal point that largely determines its operation and efficiency, as logistics costs significantly affect the consumer prices of products and services. The solid foundation of my topic is provided by the logistics knowledge and the supply chain management that extends it, which already examines the entire supply chain instead of one player at a time. A XXI. The development of information and IT in the 21st century makes it possible to apply new approaches in this field as well and to develop an approach in which we do not assess the effects of changes in retrospect, but prepare for them in advance.

In my research work, the optimization of logistics activities through simulation is the focus. The simulation has been an integral part of technical sports and engineering work for many years, this methodology is not yet used in the field of supply chain management, which would provide an opportunity to analyze the effects of changes without risk and would be a tool for companies to model and measure their activities. And measurability would provide an opportunity for correction and improvement, which plays an essential role in increasing efficiency and effectiveness. Based on this line of reasoning, I believe that the combination of supply chain management and simulation holds untapped potentials.

In my article, I will review the currently known and useful simulation methodologies, which shows the processing of the issue and the prevalence of the methodologies.