Simulation of Supply Chain Management System using Arena

Information and communication technology offers organization to build up their business structure more creative, diligent, and smart to deal efficiently in any situation. This research is focused on analyzing the impact of latest technologies on one of the business integrated systems known as supply chain management (SCM). Collaboration, time management, effectiveness and managing demand and supply are some major tasks performed by the SCM, which works in an integrated environment. To analyze the performance of SCM, a model proposed in this study, built on the traditional working theme of SCM. Furthermore, the model validated using simulation techniques implemented with the help of Arena Simulator; a tool provides a facility to simulate the real world scenario and optimize the solutions. The results emphasized that suppliers are most important key workers in the SCM; therefore, they need more resources to perform their duties efficiently. The simulation model can help the organization to understand and measure the performance of suppliers and other stakeholders, whether the variation in selected attributes can further help for model optimization.