Optimization of Supply Chain Performance through Simulation Modeling: A Discrete Event Simulation Approach

Optimization of Supply Chain Performance through Simulation Modeling: A Discrete Event Simulation Approach | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Optimization of Supply Chain Performance through Simulation Modeling: A Discrete Event Simulation Approach Misgna Arefaine Gebreabzgi, Dr. Kinfe Tsegay Beyene, Ir. Alexander Ghebremedhin Aregawi This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-5180642/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract In today’s competitive marketplace, companies must meet uncertain customer demands by delivering quality products on time and efficiently, demanding proficient supply chain management. However, supply chain management is complex and faces many challenges in practice. Trade-offs among its network components such as providing enough products to customers and the cost associated with keeping them in stock, constitute one of its main challenges. This study addresses this challenge by optimizing customer service levels with possible minimum inventory costs in the multi-echelon supply chain context. Considerable improvements were observed by leveraging a discrete-event simulation approach within the downstream supply chain of Saba Dimensional Stones Plc (SDS) and using the OptQuest optimization tool embedded in Arena. Customer service levels increased from 58.81–70.18%, whereas stock-out rates decreased from 39.8–24.52%, significantly reducing inventory costs by approximately 28.8 million ETB. In addition, remarkable decreases in lost sales and backorder levels at DCs and buffers highlight the efficiency of the proposed approach. In addition to addressing the trade-off between customer service level and inventory-associated costs, this study highlights the broader implications of simulation modeling in enhancing overall supply chain performance. These findings demonstrate that maximizing their customer service level with a possible minimum cost of inventory that focuses on customer demand fulfillment is fundamental to survival in market competition. It acknowledges, however, the need for consideration of additional factors such as environmental, social, and ethical concerns. In conclusion, this study offers valuable insights for future endeavors in supply chain optimization, providing practical recommendations to enhance managerial decision-making and ultimately determine business success. Industrial Engineering Systems Engineering Supply Chain Simulation Supply Chain Performance Opt Quest Optimization Full Text Additional Declarations The authors declare no competing interests. All participants involved in the interviews provided informed consent prior to participation. No identifiable personal data has been included in this manuscript. Supplementary Files SupplementaryMaterials.docx supplementary materials Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-5180642","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":360622127,"identity":"c0ab78e2-e954-4e56-aeff-3998f1eabda7","order_by":0,"name":"Misgna Arefaine Gebreabzgi","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAABFElEQVRIie3OsUoDMRjA8S8EkiXdI0LvCQSPQBQ87askHNhJdHISLBTSpThnqI/gWhxPDuxy6Fq3lgMXFQ4EUQQ1p3A4mNPRIf8pJPnlC0Ao9B/DzQotQAF0P9fsbwSv10Q0pJU1xKUHv5G1ES3vDo4g2hgNUbU8T/pnVqHFg4Fuz0NkzuSWvYR4UuSY62J3bzpXOD41IHxTHCGCEUCW72dcm7wmZLVjQI+9hN4K9gY9G5X4WZv3vpwr+urIsZ+AKOs3LcfETcmUIwS7HdXyMYk7Jzy1LCWb2qTxtFgOVyZXPB5nHnI9Kx/ZU7JtaY5vXsxOJGfpRXV/mER04BkDQDgA/76B6rv858tf4artNBQKhULwAcbvU5RomMiPAAAAAElFTkSuQmCC","orcid":"https://orcid.org/0009-0002-6222-386X","institution":"Mekelle University","correspondingAuthor":true,"prefix":"","firstName":"Misgna","middleName":"Arefaine","lastName":"Gebreabzgi","suffix":""},{"id":360622128,"identity":"fd573481-8fc7-4aad-8e0b-f7c4e5ae761a","order_by":1,"name":"Dr. Kinfe Tsegay Beyene","email":"","orcid":"","institution":"Mekelle University","correspondingAuthor":false,"prefix":"Dr.","firstName":"Kinfe","middleName":"Tsegay","lastName":"Beyene","suffix":""},{"id":360622129,"identity":"cf697bdf-db4a-4be3-baca-39463e460f6d","order_by":2,"name":"Ir. 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