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Nothing can model variance in supply chains like simulation.

No simulation software can model supply chains faster or easier than Simio.

All too often, supply chain models make the costly mistake of ignoring variability. According to H. Donald Ratliff’s whitepaper, 10 Rules for Supply Chain & Logistics Optimization, these oversights lead to the models producing bad data, which in turn leads to poor supply chain and logistics decisions. To quote Ratliff:

In The Value of Simulation in Modeling Supply Chains, Dr. Ricki G. Ingalls states the existence of variance is the primary reason for choosing simulation over optimization. Ingalls says if variance is a “key driver” in your supply chain, an optimization will not capture the supply chain dynamics. Regardless of the type of variance --demand forecast variance, supplier reliability, quality of incoming material, or any problem with any level of variability -- optimization fails to account for it. 

Simulation is the answer to accounting for variability in supply chains and no software does it better than Simio.

Simio allows users to:

• Build models fast using Simio’s unique modeling framework based on intelligent objects.
• Model complex systems without programming using Simio’s multi-paradigm modeling features.
• Communicate results with stunning 3D visualization made easy for the first time.

Simio gives you a view into your supply chain in a way made possible only with simulation.

• Model your system quickly and accurately using customizable objects in a code-free environment.
• Test your ideas without compromise.
• Improve system performance with the kind of objective data only made possible with simulation.
• Avoid critical risks made obvious with Simio.
• Understand the total cost of variance on the business, including labor variance, material obsolescence, material shortages, capital shortages, and most importantly, the demand forecast variance.

With Simio is object-based simulation software with a unique mix of simplicity and flexibility that lets users quickly improve performance of dynamic systems and identify and avoid risk fast.

By combining the simplicity of customizable, shareable objects with the flexibility of processes, Simio can rapidly model almost any system without requiring programming.

Why Simulation?

By its very nature, optimization cannot account for variability and since it’s the analytical tool of choice for supply chain analysis, organizations that rely on it will have a limited view of their business.

In general, optimization and simulation can both lower costs. But only simulation can evaluate on-time delivery or the dynamic cost of quality. In some cases where enough data exists, simulation can predict the quality.

Simulation is the answer for:

Systems where it is too expensive or risky to do live tests. Simulation provides an inexpensive, risk-free way to test changes ranging from a "simple" revision to an existing production line to emulation of a new control system or redesign of an entire supply chain.

Large or complex systems for which change is being considered. A "best guess" is usually a poor substitute for an objective analysis. Simulation can accurately predict their behavior under changed conditions and reduce the risk of making a poor decision.

Systems where predicting process variability is important. A spreadsheet analysis cannot capture the dynamic aspects of a system, aspects which can have a major impact on system performance. Simulation can help you understand how various components interact with each other and how they affect overall system performance.

Systems where you have incomplete data. Simulation cannot invent data where it does not exist, but simulation does well at determining sensitivity to unknowns. A high-level model can help you explore alternatives. A more detailed model can help you identify the most important missing data.

Systems where you need to communicate ideas. Development of a simulation helps participants better understand the system. Modern 3D animation and other tools promote communication and understanding across a wide audience.