Planning with Unlimited Monte Carlo Simulations During a Global Pandemic
The supply shock caused by the COVID-19 pandemic will impact long-term planning as further delays, shortages, and scarcity come to light. As supply chain planners begin to realize the importance of getting ahead of the pandemic’s disruptions as opposed to reacting to the disruptions as they occur, they are faced with finding a planning software that fully fits their needs.
“During COVID-19 recovery, combine dynamic scenario planning and the living knowledge framework for effective design and strategic responses with an agile integrated business planning for effective operational response.”
Monte Carlo Simulations assists in Supply Chain Management decisions by incorporating uncertain variables into iterative simulations, allowing decision-makers to “play out” what the future demand (or lead times) might look like. Leaders can make decisions with simulated data at their fingertips, rather than formulating simple best, average, and worst-case scenarios that do not truly account for the probability of risks.
“The popularity of Monte Carlo Simulations is due to its versatility and ease of use. The MCS method is a quantitative method that involves assigning individual types of risk to the probability of its occurrence. The consequence of an unexpected occurrence may be an unplanned change in the cost and completion date of the order or contract that can be treated as a project.”
With Vanguard Predictive Planning™, a cloud-based supply chain planning software, organizations gain a consolidated view of demand and supply across facilities, product families, and lines of business, positioning their business for recovery and success in the aftermath of the COVID-19 pandemic.
Download our COVID-19 Monte Carlo Scenario Planning brochure to learn how you can optimize your organization’s supply chains during and after the pandemic.