Simulation tools allow its users to computationally model real-life systems in order to determine their best future outcome. One real-life system that can benefit from simulation is that of the retail industry. This paper describes how simulation can be an effective tool for this type of industry, especially for process improvement projects. In addition, a small case study is presented to demonstrate the use of simulation for a large retailer which needs to improve its unloading and receiving processes. Among the future ideas for research, this paper shows that less obvious methods for process improvement, such as tracking customer loyalty, can be analyzed using simulation to determine which route a retailer should take in order to please its customers. Other topics on this subject are suggested at the conclusion of this paper. INTRODUCTIONDue to the current state of the economy, consumers are now watching their money more than ever. In times like these, normal retail customers are probably not spending as much money as they normally would or they are altogether not making the extra shopping trip. However, there is certainly a lot of room to improve processes in retail companies and, therefore, to make substantial progress; simulation techniques can help retailers improve the performance of their operations. Simulation techniques are capable of mimicking large and complex systems. Even with extremely large amounts of inputs and variables, simulation models do not take long to retrieve findings. This paper discusses articles and journal papers that have used simulation to lead to valuable insights about a retailer and how its operations are run. What makes simulation so powerful is that a retailer can use it for multiple purposes, not to simply figure out how it can lower its prices or increase store profits. The analysis of a simulation model can allow a retailer to schedule its manpower, to control its inventory, to correctly place marketing in the store, and to run its operations more efficiently in addition to many other possible outcomes.In short, simulation is an excellent method for a business to not only look at how its business is currently being run, but also to find opportunities for process improvement or to help fine-tune conclusions within process improvement projects. Most methods that practitioners use for process improvement tend to be mathematically simple and often do not take variability into consideration. This is why simulation can be an effective tool for managers to monitor and improve their daily operations. This paper is about creating a small simulation model based on information given by an important retail chain, which was embarked in a major process improvement project, and finding a way to improve the current operations. By using simulation, the authors are able to explore multiple scenarios for the retailer and recommend an option that would improve its current state. Even though this recommendation might not necessarily be optimal, it is a way for the authors to provide the retaile...
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