Supply chain simulation with discrete-continuous combined modeling

Abstract

Many simulation models have been built to facilitate the use of simulation in designing, evaluating, and optimizing supply chains. Simulation is preferred to deal with stochastic natures existing in the supply chain. Moreover, simulation has a capability to find a local optimum value within each component through the entire supply chain. Most supply chain simulation models have been developed on the basis of discrete-event simulation. Since supply chain systems are neither completely discrete nor continuous, the need for constructing a model with aspects of both discrete-event and continuous simulation is provoked, resulting in a combined discrete–continuous simulation. In this paper, architecture of combined modeling for supply chain simulation is proposed, which includes the equation of continuous portion in the supply chain and how these equations can be used in the supply chain simulation models. The simple example of a supply chain model dealing with the strategic level of the supply chain presented in this paper shows the possibility and the prospect of this approach.