Simulation performance in the Optimisation of the Supply Chain

Abstract Purpose – Recently, material flows have been viewed as an integral part of the overall manufacturing system and a critical factor in SCM. Static approaches and theoretical models are ineffective in considering all variables and constraints involved in complex instances: these often require a lot of computing time and present poor flexibility in terms of model changes. VIS approach is a valid way to support design and management decisions in order to achieve the integrated optimisation of the whole chain, but literature does not discuss difficulties and time required in applying it, or its related costs. Design/methodology/approach – Discrete/continuous hybrid simulation tools are used in order to model and simulate several operating conditions in combination with different system configurations. Findings – The discussion of the industrial cases shows the importance of simulation in supporting decisions concerning the design and management of supply chains in their great complexity and in a stochastic competitive and extended context. Originality/value – The paper deals with five significant industrial cases, which are simulated in collaboration with important enterprises and belong to different industrial sectors, in order to obtain an original quantitative analysis of time and costs resulting from a simulation optimisation based on the introduction of a set of innovative performance indices. Keywords Audiovisual aids, Supply chain management, Order processing, Distribution management Paper type Research pape