Improving Supply Chain Efficiency and Reliability Using Simulation Modeling

In the rapidly developing global economy, supply chains have appeared as critical success factors for the enterprises. This paper examines the influence of simulation modelling on the efficiency and reliability of supply chains. The first chapter sets the conceptual background to supply chains pointing out their significance in the current economy and looking into their effectiveness and reliability. The part also focuses on simulation modelling as one of the diagnostic tools and activities that pertain to the improvement of decision making procedures and strategic planning. The next chapter will dwell on the various concepts and tools for increasing the effectiveness and reliability of the supply chain, which will include: key performance indicators, optimization, approaches to risk reduction, and that of flexibility. The paper then analyses the applicability of the different methodologies of simulation modelling - such as the agent-based model, system dynamics model, and discrete event model in improving the effectiveness of the supply chain. The section with methodology can be closed by a third chapter, which is about empirical applications of the simulation model with some dedicated examples, such as container terminal and distribution center models, the benefits of these applications towards supply chain efficiency, and effectiveness reliability. The current paper aims at comparison of these approaches to assessing the practical benefits of simulation model implementation for the management of the supply chain and contributing to current researches and applications in the field under consideration.