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Guide 11 of 20

Simulation

Test decisions before making them and see their effect on cost and service.

Open the module
Who uses it: Management and planning3 min

What it's for

To answer "what happens if…?" without risking the real operation.

Step by step

  1. 1

    Arena

    Move the levers — forecast accuracy and bias, demand variability, lead time and its variation — and watch total cost, inventory value, service level, turns and stockouts week by week.

  2. 2

    Diagnostic and scenarios

    The diagnostic finds your supply chain's weak spots and savings, and saved simulations let you compare scenarios (for example a slower supplier or more variable demand).

Example: A supplier running late

You raise lead-time variation from 2 to 6 days: the arena shows how service level drops and how much more safety stock it would take to hold it.

Tips

  • Change one lever at a time to understand its effect.