{"id":1735,"date":"2024-02-07T11:34:41","date_gmt":"2024-02-07T10:34:41","guid":{"rendered":"https:\/\/scnode.com\/?page_id=1735"},"modified":"2024-11-29T11:59:45","modified_gmt":"2024-11-29T10:59:45","slug":"applying-simulation-to-sop-process","status":"publish","type":"page","link":"https:\/\/scnode.com\/index.php\/applying-simulation-to-sop-process\/","title":{"rendered":"Applying Simulation to S&OP Process"},"content":{"rendered":"\t\t
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APPLYING SIMULATION TO S&OP PROCESS<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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In this article we want to illustrate how dynamic simulation could be exploited as decision support system for enhanicng the effectiveness of SCM processes. In particular, we decied to hypothetically consider a digital twin supporitng the process of Sales and Operations Planning (S&OP).<\/p>

Let’s now look at the role that the model plays in each of the typical S&OP phases.<\/p><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Striking the right balance between users and model<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The introduction of interactions between decision makers and the simulation model is a delicate issue<\/strong>, as it introduces an organizational change in the way in which decisions are analyzed and selected: it is important that those who participate in the decisions recognize the model as a tool of credible support, to be used to validate or not ideas regarding the business.
The credibility of the model<\/strong> is therefore fundamental for its correct use; a model that is not very credible or realistic will be subject to criticism regarding its adherence to the decision-making situation and will be abandoned over time.<\/p>

If on the one hand the model must be “accepted” by the actors in the decision-making process, on the other hand it must not replace or limit the behavior of decision makers<\/strong>. A situation in which the model alone “makes the decisions” simply because it analyzes them in a purely objective manner is unthinkable.
As already mentioned, the model must constitute a valid support for decisions thanks to the possibility of evaluating the systemic effects of certain choices<\/strong>, however it is not able to capture the less rational and objective aspects<\/strong> linked to each decision which are equally critical for their success.
Therefore, the figure of the human decision-maker must always be the protagonist in all decision-making areas, both because he is able to generate ideas and alternatives<\/strong> and because he takes responsibility for decisions<\/strong> (it is in fact unthinkable to entrust the responsibility of a choice to the model itself) .<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Conclusions<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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It clearly emerges that the model supporting S&OP, if correctly implemented and used, can positively overturn some typical activities of S&OP cycles. For this to happen, however, it is necessary to introduce a new way of working in the company that involves interaction with the digital component of the model: this integration is often not easy and therefore must be appropriately facilitated by a change management plan that is able to adequately train the people involved and encourage them to use the model.<\/p>

Finally, it should be highlighted that the model supporting S&OP, thanks to the possibility of developing alternative scenarios, constitutes a valid tool for carrying out analyzes of investments inherent to the supply chain<\/strong> considered.
In fact, the model allows, through scenarios, to quickly evaluate changes in company performance<\/strong> and guide management towards more informed choices that are not limited to the economic-financial aspect alone.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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01<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Problem solving in supply chain processes<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Problem by problem: Analytical methods and Dynamic Simulation compared<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tDeep dive<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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02<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Dynamic simulation as decision support<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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How to choose the right simulation methodology for a tailor made approach to reliable data-driven decision<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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03<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The simulation dictionary<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Model, Scenarios, Simulations, Digital Twin: what is what?<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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04<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Skills and technologies<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Learn about the skills and technologies involved in this cutting-edge technology<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tDeep dive<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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05<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Simulation modelling roadmap<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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From beginner to level expert: the road ahead<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tDeep dive<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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06<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Applying Simulation to the S&OP process<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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MRP, Scheduling, and in between Simulation Modelling: discover how<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tDeep dive<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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