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Analysis of distribution network is a crucial issue in supply chain management. There is a vast array of analysis tools for logistics, but analytic tools cannot deal with the inherited variability. Thus, simulation might be a better alternative, and the use of standardized models represents a promising areas. In this paper, a simulation model facing a strategic approach will be proposed as a way to analyze a distribution network based on model consisting of two-echelons; this model can work both forwards and backwards in a recursive manner, and relies on operative key performance indicators that affect the strategy in the long term. Using a standardized model increases flexibility, focus the problem and provides a better computer performance. The model is validated through a business case for a Mexican company dealing with bottom of pyramid clients in the drugstore sector.

Strategic and Standardized Simulation of a Distribution Network - A Case for a Drugstore Company in Mexico