ABSTRACT
Simulation, in layman’s language, is the imitation of a system to analyze the overall working of the system so as to nd aws in the system, if any, and rectify them accordingly. In the case of supply chains, such a system is difcult to develop because of the complexity of the system. A supply chain can be thought of as an integrated collection of interrelated business organizations that are linked by business transactions. Thus, a supply chain may consist of suppliers, manufacturers, distributors, wholesalers, and retailers (Figure 12.1). But the structure of a real supply chain is not so simple and not serial in nature. Rather than a simple chain of serially connected echelons (business organizations), a supply chain is actually a network of business organizations that engage in complex transactions with each other.
