Spreadsheet simulation for the supply chain inventory problem

Abstract

This paper demonstrates how spreadsheets can be used to simulate supply chain inventory systems. For this purpose, a sample spreadsheet simulation model is developed for a single distribution channel. It is simulated for three different scenarios reflecting various levels of demand fluctuations (high, medium and low demand variance). The proposed modelling approach has potential value to the operational managers because it provides a simple methodology that can be implemented with any spreadsheet program. Several avenues for the use of spreadsheets in modelling supply chain systems are presented.