Advantages of simulating logistics processes

Abstract

Manufacturing and service providing companies perform or make others perform logistics tasks. This area is of great importance in everyday operations, and managers do their best in choosing operations and processes. Appropriate logistics processes and decisions mostly determine the companies’ successful operation, profitability, profit-making ability, and their costs. However, an important step before defining them is missing in most cases, namely getting to know the processes to execute, and the best method for that purpose is to get a preliminary simulation of the processes. The goal of the study is to highlight the advantages of modeling, what unnecessary introductory processes and financial losses can be avoided through simulation, and underline how deeper knowledge we can get with the help of this method.