A hierarchical approach to supply chain simulation modeling using the Supply Chain Operations Reference model

Simulation is a very useful tool for predicting supply chain performance. Because there are no standard simulation elements that represent accurately the activities in a supply chain, there exist a variety of approaches for developing supply chain simulation models. To improve this situation, this paper describes a novel supply chain simulation framework that follows the Supply Chain Operations Reference (SCOR) model. This framework has been used for building powerful simulation models that integrate discrete event simulation and spreadsheets. The simulation models are hierarchical and use submodels that capture activities specific to supply chains. The SCOR framework provides a basis for defining the level of detail in a way as to include as many features as possible, while not making them industry specific. This approach enables the reuse of submodels, which reduces simulation development time. The paper describes the implementation of the simulation models and how the submodels interact during execution.