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Simulation is a method for tackling a problem by constructing a model of the related system. It starts with an abstraction process, from which a dynamic model of the system and its logic is built. Simulation software provides the development environment in which the model is implemented, verified, validated, and experimented with to evaluate different scenarios of interest, which depend on the goals of the simulation. Researchers and companies may create their own “in house” simulation tools, although commercial software is also available and is widely used in industry. Prices vary according to feature availability, software updates, maintenance, customer service, add-on capabilities, and user friendliness. The widespread use of simulation tools in large enterprises as well as in research institutions confirms its relevance and practical utility. However, this article emphasizes the increasing relevance of simulation in supply-chain network design and management and, more importantly, its relevance to small and mediumsized enterprises (SMEs) as a source of competitive advantage and predictive power in their decision making.

Simulation of Supply-Chain Networks: A Source of Innovation and Competitive Advantage for Small and Medium-Sized Enterprises