A Comprehensive Simulation Approach to Supply Chain Management

Making supply chains more agile, adaptable, and responsive is a current trend in supply chain management (SCM). There are many different types of issues in a supply chain, including issues with transportation planning and inventory management. Each of these issues has a unique definition as an optimization problem, and solutions have been suggested. However, because the issue is considerably more complicated when approached collectively than the individual issues, it is challenging to create an algorithm for supply chain optimization concurrently. This paper presents a novel conceptual framework for multi-structural planning and management of adaptive supply chains considering structure dynamics. We develop an idea for adaptive supply chain management (A-SCM), as well as a dynamic model and using AnyLogic simulation environment as a tool for simulating the Supply Chain and assessing what-if scenarios. The modelling technique in this paper incorporates essential elements for hub shutdowns or demand pattern changes, with the goal of examining the effects of these scenarios on overall costs. This concept allows users to dynamically close hubs or adjust demand patterns through simple interactions, leveraging AnyLogic's inherent capabilities. These adjustments simulate real-world situations, such as supply disruptions or fluctuations in demand, enabling decision-makers to assess their potential impact on the cost structure of the supply chain.