The role of simulation and optimization methods in supply chain risk management: Performance and review standpoints

Abstract An effective risk management procedure can counterbalance critical effects on supply chains. Computer applications, optimization and simulation techniques have been applied to improve the decision-making process. The purpose of this article is to analyze the role and contribution of simulation and optimization methods for the supply chain risk management approach. A systematic literature review process was performed, followed by discussions and analysis on the examined topic. The results revealed a key methodological disconnection involving risk management phases, simulation and optimization methods. Although the number of published papers on the topic has been significant, this gap highlights the limitations of several models to represent the dynamics and complexity of the risks in supply chains, particularly on real-world/real-time applications. Hybrid and flexible simulation-based optimization models for supply chain risk management could improve the decision-making process. In addition, gaps, a procedural framework, and future research directions are suggested aiming to develop new applications focused on simulation and optimization tools for risk mitigation proposes.