Supply chain decisions are often fraught with uncertainty, but Monte Carlo simulations can offer a data-driven approach to mitigate risks. This method uses random sampling to model potential outcomes and assess the impact of various uncertainties. Here’s how you can leverage it:

• Identify key variables: Determine which factors most affect your supply chain, such as demand fluctuations or supplier reliability.

• Run multiple simulations: Use software to simulate thousands of scenarios, giving you a range of potential outcomes.

• Analyze results: Evaluate the probability of different outcomes to make informed decisions and develop contingency plans.

How do you tackle uncertainty in your supply chain? Share your strategies.