Supply Chain Simulation

One thing I learned about during the review of the simulation model is how important it is to have an efficient supply chain in place. While describing the model, we’re told that if just one day can be shaved off the total time between production and delivery, it could save the company up to 24 million dollars per year. That number is amazing to me and it highlights just how important it is to have an efficient supply chain. That’s the power of this type of simulation model. It takes an incredibly complex process and uses logic and detailed data inputs to basically predict the future.

It occurred to me while watching the video that it must take a lot of coordination and collaboration to make this system work. For the simulation to be useful, it needs to have information from all points in the supply chain. Something as simple to overlook as a holiday can cause a major disruption to the supply chain. For this reason, it must take communication between the dealers, manufacturers, trucking, rail and freighter companies, and everyone else who has any piece of the puzzle. This made me think that this type of business must rely on the principles set forth in the CPFR model. In this case, it would be even more complicated do to the number of outside participants in the collaboration process.

In general I’m a big fan of simulations. Although it’s a different type of simulated environment, I use them frequently to test new software or network topologies, or just to brush up on my networking skills. I’ve recently been introduced to a program called GNS3 that gives you the ability to create full networks with virtual routers, access switches and VirtualBox servers. The VinLogic simulation in particular seems to me to be very comprehensive. It allows you to make decisions virtually before committing to them in real life, which affords you the opportunity to identify any potential unforeseen side effects of that decision. However, I think this type of...