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Supply Chain Intelligence

 
Created by : Shailena Varma, Logistics Manager, Target  | 08 19 2008 03:08:23 +0000
Industry : Retail Chain/LogisticsFunctional Area : Logistics & Supply Chain(Operations)
Activity:  468 views;  last activity : 07 08 2011 13:03:11 +0000
Supply chain has always emphasised on optimization , now there is a renewed interest on simulation which allows analysts to see the behavior of the supply chain system over time. What are your thoughts on optimization versus simulation?
 
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Simulation Vs Optimization
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I think , Optimization is an all time winner as it can handle complex global supply chain network or huge transportation plan. Nowadays heuristics are used to reduce the size of the problem that the optimizer is working on, which enables it to complete faster, or to ensure it doesn’t produce theoretically optimal, but practically impossible solutions.
By Akhilesh Majumdar, Logistics Manager, Tesco  08 19 2008 03:09:27 +0000
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Though I am voting for simulation here, I believe this comparison is akin to comparing apples with oranges. Simulation is strategizing whereas optimization is planning. I have seen these two terms being used interchangeably but I believe simulation is best used when you are planning high level major process/network/structural/strategic changes within your supply chain or say you are planning to add a plant or a warehouse and you need to figure out the impact of the same on your overall supply chain. It is more like "What if", envisioning a "future state" . Optimization on the other hand is more "current state" or "as is", wherein you look for ways to best leverage the existing resources within your supply chain with all the available parameters, so for example what production volume can best minimize your transportation cost (so it is more focussed than simulation). There might be some overlap between optimization and simulation in some of the products that are current being offered by various vendors. The gist is, both are equally important, one for planning and the other for strategizing....but I don't see an option to vote for both here. As I have frequently used simulation softwares, I decided to vote for simulation


By Kumar Saurabh Singh, PMP, CPIM, North America Leadership Development Program, Steelcase Inc  | 07 08 2011 13:06:55 +0000
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Definitely Simulation is in demand today , i think that in SCM  the demands are dynamic and optimization is not generally so good at handling highly dynamic variables which change regularly .Simulation helps in achieving this .It may allow bottlenecks to be identified that would be missed in an optimization program that gives the best total answer but misses supply chain or operational glitches along the way.
By Shailena Varma, Logistics Manager, Target  | 08 19 2008 03:08:23 +0000
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i am go with optimization.its very challanging & exciting jobs. to work with lean inventory & maintain the sales in all over SKU's.
By Deepak , Senior Executive-II -(NonTechnical), LG Electronics Pvt.Ltd  | 10 22 2009 19:14:06 +0000
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I belive that optimization of supply chain results in smotth process flow and may also help in cost cutting and can improve relation between supplier and core manufacturer.


By Jigar Mistry, B.Tech/B.E. student, A.D. Patel Institute of Technology  | 07 18 2009 14:42:48 +0000
 
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