SUPPLY CHAIN OPTIMIZATION AND SIMULATION: Technology Overview

White Paper

Analytical optimization and dynamic simulation are the two most commonly adopted technologies to solve complex supply chain problems. However, there has been a lot of confusion around the terms “optimization” and “simulation” in the industry – they are often misinterpreted by people and companies offering supply chain solutions, used in the wrong context, and meaning different things.

Many managers question the differences between these techniques, which one is better or more efficient, and what problem does each one solve? This white paper tries to resolve the confusion and explain when best to apply each of these methods.


The paper will also show why analytical optimization tools already employed by many supply chain strategists should be accompanied by dynamic simulation, and how managers can improve lean and agile supply chain management with this addition.

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