The choice between a simulation-based method and an analytical method is not exclusive: in some cases, using both tools combined allows you to achieve the best results.

One could think of analyzing a decision using an analytical approach and then developing alternative scenarios using simulation or vice versa, generating sub-optimal scenarios for a given problem through simulation and then moving on choosing the optimal scenario using an analytical method .

Some typical decisions of SCM processes that find valid decision support in simulation may concern:

• Design (or re-design) of the supply chain: if the value chain presents systematic inefficiencies, it is necessary to intervene on the variables of the logistics network to ensure the correct level of service and cost efficiency. For example, the repositioning of storage or production sites can be one of the typical decisions made in this context. In this case the simulation can help to develop a Network Redesign that provides valid alternatives for the positioning of the sites, both at a geographical, operational capacity and economic level. The input data considered by the model will therefore concern the current location of the facilities, their storage capacity, production capacity and the reduction/increase in fixed and variable costs. As an output, the model will allow to verify in detail how the level of service, the structure of costs and revenues as well as any environmental impact vary depending on the different scenarios hypothesized for the new distribution network.
  
  
• Product portfolio review: the simulation approach is particularly useful for evaluating the introduction or removal of SKUs in the market. An analysis of this type allows to verify the saturation of production and storage capacity, the effectiveness in responding to market needs and the possibility of cannibalization of existing products.
  
  
• Long-term production planning: based on the sales plans agreed with the commercial function, it is possible to simulate various scenarios for verifying the saturation of production capacity to anticipate any critical issues in the medium-long term. This results in decisions to modulate the production capacity of the plants in order to adapt it to events expected in the future, such as: seasonal peaks, new market trends, changes in market share, promotions, etc.
  
  
• Review of inventory policies: it is a decision-making situation that is taken by mutual agreement between the production function and the sales function, when there are important changes in the structure of the supply chain, in the demand presentation patterns or in  financial targets for reducing working capital. In this case it may be necessary to review the parameters for managing stocks of finished products, semi-finished products and/or raw materials to accommodate the new objectives. In this decision-making situation, simulation allows you to carry out a sensitivity analysis on the management parameters of the inventory policies (such as: reorder point, reorder quantity, safety stock, maximum stock, etc.), quickly identifying the optimal  values through the comparative analysis of different scenarios.

In conclusion, at different moments in time companies are called upon to make a certain number of strategic decisions of different importance, relevance and complexity. It is therefore possible to group decisions according to the convenience of using analytical rather than simulation methods, as shown in the figure.