Question

Smart-A-Runners Ltd based in Hatfield UK is considering adopting a track and trace system for their supply chain. The company will be using computer simulation to evaluate the benefits of the track and trace system. Briefly discuss how simulation can be used to evaluate the benefits of Smart-A-Runners Ltd’s track and trace system and explain to the company the key issues to consider in their use of simulation.

Answer 1

A simulation is basically used to collect relevant data from a big supply chain network so that it becomes easier for the management to make decisions.

Usually supply chains are very complex with having a lot of distributors, suppliers and other involved parties. Thus simulation helps in understanding the true behavior and patterns of the supply chain.

Thus with the help of simulation Smart-A-Runners Ltd would be able to achieve the following goals and objectives very easily:

1. Optimize the supply chain(track and trace system) and make it more efficient with the help of data retrieved.

2. It would give a very clear picture of the track and trace system to the management based on data rather than words, and thus management would be able to take strategic decisions and formulate new plans.

3. Reducing the risk of failure, or finding the parts of track and trace system that are being hampered and could lead to breaking of the whole system.

Most importantly, simulation would help in finding various outcomes that could be possible in a track and trace system. Simulation helps to keep the system flexible providing the management leverage to plan and execute in a creative approach.