Hybrid SD/DES Simulation for Supply Chain Analysis

According to Shapiro (2007), simulation models permit the study of the dynamic behaviour of a supply chain. Simulation models can describe how all parts of the supply chain will operate over time in respect to a set of parameters and policies defined by managers/analysts. Understanding the dynamics of the supply chain in a safe computer environment is the main value of computer simulation models. According to Akkermans and Dellaert (2005), there are two distinct approaches to computer simulation for supply chain analysis: Discrete Event Simulation (DES) and System Dynamics (SD). Both approaches have been used extensively, as reported in the literature (Jahangirian, Eldabi, Nasser, Stergioulas, & Young, 2010; Tako & Robinson, 2012). Simulation models in both DES and SD are built to understand how systems behave over time: DES is considered to be more appropriate for modelling problems at the operational/tactical level, whilst SD is more suited for modelling problems at strategic level (Tako & Robinson, 2012). However, a number of authors have suggested the use of a hybrid SD/DES simulation for supply chain analysis (Reiner, 2005; Pereira, 2009; Venkateswaran & Son, 2005; Rabelo, Helal, Jones, & Hyeunk-Sik, 2005; and Lee, Cho, Kim, & Kim, 2002). A hybrid SD/DES simulation approach analyses both discrete and continuous aspects of a supply chain simultaneously (Pereira, 2009). Moreover it allows the analysis of both strategic (long-term) and tactical (short-term) aspects simultaneously (Venkateswaran & Son, 2005). BACKGROUND