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Supply chain glossary

Discrete Event Simulation

What discrete event simulation is, how it differs from a spreadsheet capacity calculation and why a single run or an uncut warm‑up period misleads.

11. november 2026

2 min

Discrete Event Simulation

Discrete event simulation (DES) is a modeling method that represents an operation as a sequence of individual events, such as an order arriving, a picker starting a line or a truck leaving the dock, each changing the state of the system at a specific moment. Between events nothing changes, so the model jumps from one event to the next and can replay weeks of warehouse or production operation in minutes.

Arrivals and durations are drawn from probability distributions fitted to real data instead of being set to averages. That is the difference from a spreadsheet capacity calculation: queues, blocked aisles and idle stations arise from variability and interaction, and a model fed only averages does not see them. The output is throughput, queue lengths, utilization and order lead times over the simulated period. A detailed digital twin of a warehouse is a DES model kept in step with current data.

Discrete event simulation in practice

One simulation run is one random sample, not an answer. Two runs of the same model with different random seeds give different results. Say ten replications of the current layout average 2,180 order lines per hour with a standard deviation of 60. The 95% confidence interval of that mean is about ±43 lines (2.26 × 60 ÷ √10). A proposed layout that reaches 2,230 lines in one run has proved nothing yet, because a single run of the new layout carries the same spread of about 60 lines. Running both variants on the same random number streams and adding replications narrows the interval before anyone signs off on the investment.

The second trap is the warm‑up period. A model starts with an empty operation – empty buffers, no backlog, idle pickers – so the first simulated hours show more capacity than the real site has. Statistics are collected only after queues and stock levels settle, and the warm‑up is cut from the results. A report that skips replications and warm‑up presents the best case as the expected one.

Logio builds DES models of warehouses, production lines and material flows in dynamic simulation projects and uses them to compare layout, automation and staffing variants before the investment, as part of intralogistics and material flow design.

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