| SCDigest Says:
| Simulation tools allow companies to take a look at a range of potential outcomes based on the potential vagaries of supply, demand and other factors.
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Among the hottest categories of supply chain software over the past few years has been supply chain network optimization and inventory optimization applications. In a nutshell, network optimization helps companies design the optimal physical network and also to make increasingly granular supply chain decisions (e.g., the best locations to build a new product, or the best sourcing locations considering total supply chain costs).
Traditionally, optimizing inventory levels across the supply chain was not handled by supply chain network design tools. So, the newer category of supply chain inventory optimization was developed to solve that question, especially across multi-level (echelon) supply chains.
Finally, there is an increasing interest in simulating supply chain performance, to better understanding potential trade-offs and risk factors. Simulation tools allow companies to take a look at a range of potential outcomes based on the potential vagaries of supply, demand and other factors.
(Supply Chain Trends and Issues Article - Continued Below)