• Supply Chain Simulation - Talumis

Supply Chain Simulation & Optimization by Talumis

Supply chain simulation is the computer-based modeling of a real supply system. Simulation enables an organization to analyze and experiment with its existing supply chain process in a virtual setting including all dynamics and uncertainties that real life supply chains are subject to.

Optimization is the process of finding “the best” or “optimal” result out of a feasible set of solutions while meeting supply chain business constraints. It is necessary that decisions are  quantifiable: both a quantifiable objective function (that is optimized), as well as a set of quantifiable constraints is needed. Then it is possible to create a mathematical formulation that can be ‘optimized’.

Supply chains encounter an increasingly complex market environment where the number of competitors are expanding and where customers have higher expectations. For these reasons it becomes more important for producers to minimize the costs and inventory while maintaining high flexibility and delivery reliability. But as the complexity of supply chains increase it also means that supply chains are very hard to accurately optimize for all variables.

</p><h6 style="margin-bottom:5px;">Dirk-Jan Moens</h6><p>

Dirk-Jan Moens

Owner/Supply Chain Simulation Consultant
Ask Dirk-Jan a question

Combine Simulation & Optimization for effective Supply Chain Modeling

Simulation and optimization are two common techniques in predictive analytics. Using the two techniques together offers supply chain leaders the best of both worlds: a recommended course of action based on a more accurate understanding of uncertainty in the supply chain. Different deterministic and stochastic Optimization models can be tested and fine tuned using simulation mimicing real life tests of designs and control rules.

supply chain simulation

Why simulate supply chains?

The need for efficiency in industry has never been greater, with personnel, transportation, warehousing and material costs continuing to rise each year. Simulation is the only tool that is able to research the dynamics of a supply chain. Simulation provides a way to put a system to the test in a risk-free design and test environment.

It also enables users to determine minimum storage costs without sacrificing the required output. Through the use of supply chain simulation software, businesses can understand the factors that affect their system, including evaluation of unknown problems, decision analysis, risk management, and future project planning.

Optimize your supply chain

If you want to have more information about how Talumis can help optimize your supply chain by simulation and optimization , please send a question to our supply chain expert Dirk-Jan Moens.

Typical Questions that can be answered by Supply Chain Simulation & Optimization

  • Can we optimize our existing process to reduce the occurrence of stockouts and overstocks?
  • Would adding additional storage or combining storage allow for better management of inventory levels?
  • Would our new supply process actually reduce the risk of bullwhip effect?
  • What is the reliability to deliver my products on time to the customer?
  • What is my minimum inventory without losing the delivery reliability to the clients?
  • How should I design my transport means between producer and consumer?

Supply Chain Video Example

Talumis supply chain simulation clients


Talumis uses the best supply chain simulation software: FlexSim

FlexSim is powerful yet easy-to-use software for simulation. A comprehensive and innovative simulation engine is hidden behind drag and drop controls, drop-down lists and many other intuitive features that make it accessible for anyone to experiment with a model. All simulation models are created to scale and are presented using 3D visuals, making it easy to watch the virtual system go through its daily operations and visually observe which elements are lacking in efficiency. FlexSim also gives decision makers the tools to confirm their observations, with impressive statistical reporting and analysis built right into the software.

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FlexSim Simulation Software