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</html><description>Simulation dictionary: Models, Scenarios, Simulations and Digital Twins In previous articles we have repeatedly mentioned the words &#x201C;models&#x201D;, &#x201C;scenarios&#x201D; and &#x201C;simulation(s)&#x201D; without however giving a clear definition, which can help in understanding the functioning of the simulation model within Supply Chain processes. 1. Models With the term &#x201C;model&#x201D; we entail the representation of an object, entity or process in an artificial (virtual) environment, capable of reproducing its functioning and performance according to a certain degree of reliability . This definition therefore allows us to state that a model supporting a generic SCM process, whether based on simulation or not, must replicate the input data flows (sales plan, production plan, financial objectives, etc.), process them correctly and provide the decision maker with a vision of the expected results. The definition of model also introduces some important concepts which we summarize below: A model constitutes a representation of something observable/perceptible in reality: just as the same object can be represented in various ways depending on the painter who creates the painting, the way the modeler decides to represent the observed phenomenon is often subjective and it lends itself to the interpretation of the person who creates the model and to his perception of reality. Therefore it is important that in the phase of defining the model requirements there is always an expert figure about the reality studied, whether linked to the business or technical field. The phenomenon represented by the model can be of any type: from a physical object (e.g. the functioning of a warehouse or a factory) to an abstract process (e.g. the phases of the management process of a tender). The description of the phenomenon to be modeled must be as framed as possible, to avoid having to include factors, variables and interactions in the model that are not necessary for its analysis. The environment in which the model is conceived, developed and simulated is purely artificial, or better yet, virtual: while for a model of a building there are different implementation environments (from CAD software to 3D printing of the model), the simulation model exists only virtually and must therefore be developed using specific software. If on the one hand the virtuality of the simulation model does not allow easy recognition of the effort and complexity necessary to create it, on the other hand it enables a key advantage of this type of applications: the possibility of creating copies of the model on which is possible to make experiments with variations, additions, changes, etc. at zero cost and without having any type of repercussion on the reality analyzed. The difficulty and burden of creating a precise simulation model is therefore compensated by the fact that it can be modified freely and infinitely without incurring any danger or additional cost. This advantage leads the decision maker to adopt a new type of decision-making approach based on experimentation (trial and error approach) at zero cost and time. This approach allows to test a multitude of alternative ideas and solutions and to direct the decision maker&#x2019;s mind towards non-standard solution paths. These way of reasoning is in any case different from the traditional decision making mindset, with evident benefits regarding effectiveness and efficiency of the implemented solutions. The model must reproduce the functioning of the observed phenomenon: this presupposes in-depth knowledge of how the phenomenon operates. However, although the functioning of processes, companies, etc. is often known, the results often tend to deviate from those expected. This is mainly due to the presence of stochastic and irrational factors within any type of phenomenon. In the simulation model, unlike other applications, it is also possible to take these biases into consideration and study their effect on the results,&#xA0;to establish effective containment or abatement strategies. The creation of a simulation model requires establishing a priori the appropriate level of detail to analyze the phenomenon. This is a key aspect as it affects on the one hand the quality of the results provided by the model and on the other the time and design effort for its implementation. Therefore, even for simulation, as for any project, there is a trade-off between quality and time (cost) of implementation: a clear definition of how the model must work for determining the results is fundamental for the correct estimate of the development time. Having briefly clarified the fundamental concepts underlying the definition of model, we then move on to analyze how many and which models may be necessary depending on the analysis needs. We can distinguish two main cases: the one inherent to the creation of a single model and the one which instead requires the creation of multiple models. 1.1 Unique model In the case of single development, it is necessary to create a model because we want to know the state of the art and the performance of a phenomenon (usually process) that may exist or still be created. An application example may regards a situation where management needs to obtain information regarding company processes that are not able to be monitored correctly through the existing information systems and technologies.Let&#x2019;s think for example about monitoring and estimating CO2 equivalent emissions in relation to a supply chain: it is unthinkable to analytically measure emissions at each step of the supply chain and for each process. However, in order to have an estimate of the environmental impact and what to do to mitigate it, the creation of a simulation model can represent the right application for the calculation and tracking of all emissions, both direct (scope 1) and indirect (scope 2 and 3). In others situations in which the model concerns a process that does not yet exist, it is clear that the simulation in this case not only performs an analysis function but also a design function of the characteristics of the new process. A classic example of this use concerns the design and subsequent set up of a supply chain starting from scratch (for example for the marketing of a new product or for &hellip; Leggi tutto ""</description><thumbnail_url>https://scnode.com/wp-content/uploads/2024/01/SimExp-image4.png</thumbnail_url><thumbnail_width>4259</thumbnail_width><thumbnail_height>2626</thumbnail_height></oembed>
