S I M U L AT I O N

MODELING
FO R
CO N S U LT I N G

W H I T E PA P E R
CONTENTS
01 Why use simulation modeling? 02

02 Simulation modeling for consultants 04

03 The only industrial-strength product 06

Case Studies 10

04 A Customer-Centric Public Transport System 10

05 Microsoft End-to-End Supply Chain Solution 13

06 Walmart’s Alphabot: Designing a Material Handling System with Simulation  16

07 Become a successful consultant in AnyLogic 19

Conclusion  21

Additional Resources 22

01
WH Y US E
SIM U L AT I ON
MOD E L IN G?
 WHY USE SIMULATION MODELING?

WHY USE SIMULATION MODELING?

Simulation modeling solves real-world problems safely and efficiently. In a wide It is now standard in business and engineering to use simulation modeling, and to
variety of business situations, simulation models provide insight and analysis meet the needs of different industries, a range of different tools exist.
that is easily verified, communicated, and understood. Across industries and
disciplines, simulation modeling enables organizations to work easily with Businesses use simulation when conducting experiments
complex systems and to enhance the way they do business. on a real system is impossible or impractical because of
safety, cost, or time.
Bits, not atoms. With a valid digital representation of a system, you can conduct
experiments without risk. Unlike physical modeling or experiments on a real- In the construction industry, architectural and engineering considerations will be
world system, simulation modeling is computer-based and provides a virtual modeled in a Building Information Modeling (BIM) tool such as Autodesk Revit.
place for experimentation. While for disciplines such as material science or signal processing, modelers
might use Matlab. For many cases, such as for manufacturing (Tata Steel),
Simulation software provides a dynamic environment transportation (Port of Long Beach), or business processes (McDonald’s), the
for the analysis of computer models while they are most applicable tool is the multimethod simulation modeling software AnyLogic.
running, including the possibility to view them in
2D or 3D – this can help build understanding and While developing and maintaining cutting-edge simulation models has become
trust because it is possible to inspect and interact easier with modern tools, they can still require skills and knowledge not retained
with live processes. in all organizations. In these situations, when there is a need to supplement
in-house simulation expertise, consultancy allows
organizations to efficiently realize the full potential of
simulation modeling.

Read on and discover why consulting practices around

the world use simulation, see examples of their work,
and get started with AnyLogic – the only general-
purpose simulation software for successful consultancy.

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SIM U L AT I ON
MOD E L IN G FO R
CON SU LTA N T S
 SIMULATION MODELING FOR CONSULTANTS

SIMULATION MODELING FOR CONSULTANTS

Consultants use simulation to resolve many different challenges for clients under A good simulation consulting tool will permit multimethod modeling and avoid
a variety of circumstances. A single simulation tool that can be applied to each the constraints imposed by choosing a single method. Importantly, the tool
of these different challenges is essential because of time and cost – not having should assist practitioners in the modeling process, such as with industry-specific
to learn a new tool or niche approach means more time can be spent on solving libraries that ease and quicken modeling. The tool should also enable easy
the problem at hand. sharing and collaboration between client and consultant.

AnyLogic is the multimethod simulation platform for business. With it, you
are never limited by a single modeling method. You can always choose the
most efficient one, or combination, to best address your problem. Combined
with industry-specific modeling libraries, AI integrations, and cloud platform
capabilities, AnyLogic is considered without peers. Read on to find out more.

“I go back with AnyLogic to the very beginning: over ten

years now. Ten years ago, AnyLogic was what I call the only
industrial strength product that had a hope of doing both
system dynamics, agent-based, and discrete-event in one
package. As best as I can tell, it’s still the only package that
has that capability. As we do more, especially in the realm
of agent-based models, there are some open-source tools,
but none of them has anything close to the functionality
that AnyLogic does.”

– Dr. Mark Paich, Director, PwC

THE O NLY
IN D U STR I A L-
ST RE NGT H
PRO DU C T
 THE ONLY INDUSTRIAL-STRENGTH PRODUCT

THE ONLY INDUSTRIAL-STRENGTH PRODUCT

AnyLogic is a powerful multimethod simulation modeling environment with
extensive industry-specific libraries, advanced AI integrations, and built-in cloud
computing capabilities.

There are three common simulation modeling methods:

•• Agent-based modeling – for capturing the interactions

of many independent objects such as in supply chain, social
networking, and asset management.

•• Discrete event modeling – for describing a sequence

of events through time, and helping diagnose business or
manufacturing process issues.

•• System dynamics – for considering global dependencies Agent-based, Discrete event, and System Dynamics modeling
without fine detail. They are used for modeling at a macro scale,
such as for populations or economic systems.
Beyond combing the three main simulation modeling methods, AnyLogic offers
For different situations each method will be more or less suitable and applying built-in industry-specific libraries that let modelers work more quickly and easily:
just one method will likely require unnecessary compromises. Unnecessary
because with a multimethod approach each part of a system can be captured in •• Material Handling Library for manufacturing and
the appropriate manner – no excluded elements or workarounds. warehouse processes.

•• Rail Library for rail transportation, terminals, and yards.

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 THE ONLY INDUSTRIAL-STRENGTH PRODUCT

•• Pedestrian Library for pedestrian flows in airports, stadiums, A powerful set of experiments lets you conduct analysis in different ways:
stations, or shopping malls. Monte Carlo, Sensitivity Analysis, and Parameter Variation experiments help
find how randomness and parameter changes affect model behavior. In addition,
•• Road Traffic Library for car, truck, and bus movement on roads, simulation optimization helps find better solutions for your business challenges
parking lots, and factory sites. based on your constraints and requirements.

•• Fluid Library to simulate bulk cargo and liquid transfer in AnyLogic Cloud
industries like mining or oil & gas.
Collaboration is made easy when we can share common resources. AnyLogic
•• Process Modeling Library for generic business simulation models can run in the cloud allowing them to be shared with clients
processes or workflows. and worked on with colleagues. Cloud models can have interactive dashboards
and simply require a web browser to use. For easy bespoke integrations, inputs
For the power user, AnyLogic features Java-level extensibility. This allows the and outputs can be managed by RESTful API (JavaScript and Python).
creation of complex and reusable custom objects, experiments, and libraries.
Model designers do not need to reinvent the wheel with every project. Models run in the cloud while their animations render browser-side – the server-
They can reuse components and even develop whole libraries that can be side manages the computation, easing the load on the client-side computer. If a
offered as add-on packs.

This extensibility combined with data interoperability provides flexibility for

modelers. Models can be exported as stand-alone applications that integrate
with external platforms, such as CRM or BI, and use data sources to self-
configure. For example, a model that determines driver scheduling for a delivery
company can be parameterized with data from the vehicle database. Any
changes, such as for unplanned maintenance, can be accounted for and new
scheduling assessed and tested. Outputs from the system can then inform the
order management system to update delivery estimates.

Integrated GIS mapping functionality lets models use routing and location-based
data, both online and offline, as well as connect with other mapping services.

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 THE ONLY INDUSTRIAL-STRENGTH PRODUCT

simulation is run without animation, it runs as fast as possible and can take full AnyLogic’s open API helps easily integrate with AI projects, while integrations
advantage of the cloud platform’s computing capabilities. with powerful machine learning platforms from Microsoft, Pathmind, and H20.
ai provide easy access to the possibilities they offer. To learn more about the
Private Cloud synergies between AI and simulation, and how businesses are benefitting,
download our AI white paper.
Privacy is important and that is why AnyLogic lets you take full control. AnyLogic
Private Cloud installs and runs on a client’s infrastructure. No need for an
internet connection, clients have complete control over cloud data and internal
network connections. Private installations can have custom branding or even
fully customized interfaces, allowing consultants to maintain their own cloud
and offer bespoke simulation models to clients. Custom interfaces let simulation
models easily embed into other business workflows and tools. With an AnyLogic
Private Cloud instance, you are free to use simulation however, wherever, and
with whomever it is needed.

Cloud-based simulation modeling lets consultants collaborate on models as

they are being developed and, with just a link, easily share them with clients for Read on for case studies that demonstrate how consultants are leveraging
feedback throughout the design process or during troubleshooting. AnyLogic simulations, cloud computing, and AI possibilities to give clients
cutting-edge business insights.
The combined capabilities of AnyLogic simulation software form a powerful
tool for resolving business challenges. The integration and general applicability AnyLogic is a powerful simulation platform with a long
of AnyLogic’s capabilities help cut costs and save time because, once learned, history of success across industries. Now, combined with
no time is lost developing software knowledge and skills can be transferred cloud computation and connectivity, AnyLogic simulation
easily between projects. models are powerful consulting tools for delivering more
insights and easily visualizing them dynamically on computer
AI Integrations or smartphone. Read more about AnyLogic Cloud.

Artificial intelligence technologies have risen in prominence over recent years,

especially machine learning, and they naturally complement simulation.

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 A CUSTOMER-CENTRIC PUBLIC TRANSPORT SYSTEM

C A S E ST U D I E S
A CUSTOMER-CENTRIC PUBLIC
TRANSPORT SYSTEM
 A CUSTOMER-CENTRIC PUBLIC TRANSPORT SYSTEM

A CUSTOMER-CENTRIC PUBLIC TRANSPORT SYSTEM

PROBLEM: To achieve these aims, PwC built a model of the transportation network
that simulates train movements, and incidents, as well as customers at
Public transportation services in Australia are undergoing a transformation. stations and in trains.
Changing demographics are driving the need for intermodal transport
integration and major infrastructure investment from the federal government.
To better address these challenges, smart cards are helping planners understand SOLUTION:
the public transport network from a customer point of view.
The model was built in AnyLogic and is multimethod – using discrete event
As part of the solution, PwC Australia developed a customer-centric view of modeling for train movements and agent-based modeling for customer behavior.
railway infrastructure to help understand how incidents affect the current In addition, plans to scale the model could easily be implemented thanks to
network and how to improve their handling. The project aimed to help: AnyLogic’s extensibility.

•• understand the number of customers potentially impacted Input data for the model was obtained from various sources, including
by an incident such as a train derailment, engine breakdown, the transportation company, government, and publicly available
or medical emergency sources, and included:

•• understand network behavior when incidents occur •• Network layout (signals, track geometry,
stations, and platforms)
•• provide accurate predictions of incident-related delays
•• Train data (train set types and capacity per carriage)
•• support operational and maintenance decisions
concerning incident responses •• Timetable (route, train type, number of carriages)

•• identify incidents for root cause analysis, such as recurrent or •• Operating rules for recovering the network and in hot weather,
location-specific incidents including speed restrictions

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 A CUSTOMER-CENTRIC PUBLIC TRANSPORT SYSTEM

an incident can take several hours and a Network Incident Graph helps analysts
by clearly showing the length of time each incident affects the whole network
– a capability that enables the testing and comparison of different incident
mitigation policies.

The model’s key metric is Lost Customer Minutes (LCM), calculated as the sum
of delay minutes for all individual journeys within a particular train or network
segment. LCM can also be reviewed in the context of when minutes are lost, such
as at rush hour or during the weekend.

The model’s interface also includes a conventional train graph and an animated
model with a GIS map to visually present processes in the system. The train graph
and network animation show where trains are on the network, how close they
Model Animation and Graphs
are running to their schedule, and if they will be available for return journeys.

•• Incident data (types of incidents)

RESULT:
•• Passenger data (smart card data and existing usage statistics)
From the model’s precise insights, PwC developed better mitigation policies that
Train movement logic was modeled using the AnyLogic Rail Library while the helped the government lessen the impact of incidents and quicken recovery. The
platform’s flexibility allowed the development of custom components to model model allows policy analysis according to the number of passengers affected by
specific aspects of the project. an incident – helping provide a qualitative assessment from the point of view of
passengers. With the help of the simulation model, it is now possible to evaluate
First, the model provided a network-level view of customers at stations: it shows investment decisions according to their estimated impact on Lost Customer
the number of customers currently waiting at each station on the network, Minutes and related KPI.
including their direction of travel, and the number of passengers on each train.
The project is continuing and will include other forms of transport as well as
The model shows the behavior of the network as it recovers from an incident future network extensions. Additionally, there are plans to simulate passenger
and the time required to return to normal. If an incident occurs, it can have a flows within and around stations to investigate overcrowding.
long-lasting impact on the timetable, especially during rush hours. Recovery from

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 MICROSOFT END-TO-END SUPPLY CHAIN SOLUTION

M I C RO S O F T
MICROSOFT END-TO-END SUPPLY
CHAIN SOLUTION
 MICROSOFT END-TO-END SUPPLY CHAIN SOLUTION

MICROSOFT END-TO-END SUPPLY CHAIN SOLUTION

PROBLEM:

Microsoft contracted Goldratt Research Labs to design,

validate, pilot, and implement an end-to-end supply chain
management solution based on Theory of Constraints
(TOC) best practices.

A critical part of the project was for Goldratt

Research Labs to develop a self-configurable supply
chain simulation model. The model was to validate
the operational and financial improvements of
a TOC-based solution.

SOLUTION:

A Strategy-and-Tactic tree (S&T Tree) was developed to

show exactly which rules were needed to achieve the
desired performance improvement and objectives.

An AnyLogic simulation model was developed

to test and verify the operational and financial
performance of the new rules.

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 MICROSOFT END-TO-END SUPPLY CHAIN SOLUTION

Supply chain and product data are extracted from the SAP system and used OUTCOME
to configure and fully model the Microsoft global supply chain. Additionally,
historical customer demand data and daily on-hand-stock data were used to Microsoft’s CTO of Global Supply Chain, Robert Meshew, confirmed the results
compare simulated (using the new TOC-based rules) vs. actual past performance. they have achieved since integrating the new TOC-based end-to-end supply chain
solution into their SAP system.
A simple custom user interface allows stakeholders to manage scenarios and
select which TOC rules to use, which product channels to include, and the
period to simulate without knowledge of the simulation modeling platform. The “The outcome has been nothing short of remarkable. In that
output of the simulation is visible directly from the AnyLogic model and can also time, we’ve seen our service levels rise to our customers by
be exported to Excel. over 5%. At the same time, we’ve seen our inventory levels
drop by quarter billion dollars across the board which has led
The model can be run in three different ways: to reduced markdowns and reduced excess and obsolescence
of over a hundred million dollars.”
•• Single run experiment
Microsoft’s CTO of Global Supply Chain, Robert Meshew
•• Sensitivity analysis to test parameters against outcomes

•• Scenario comparison

The interface includes network flow and mapping visuals to show the supply
chain configuration. Users can view cumulative plots of actual and forecast
demand versus production capacity to understand potential problems. And, while
the model is running, it is possible to view operational and financial statistics to
monitor performance.

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 WALMART’S ALPHABOT: DESIGNING A MATERIAL HANDLING SYSTEM WITH SIMULATION

WA L M A RT ’ S
A L P H A B OT
DESIGNING A MATERIAL HANDLING
SYSTEM WITH SIMULATION
 WALMART’S ALPHABOT: DESIGNING A MATERIAL HANDLING SYSTEM WITH SIMULATION

WALMART’S ALPHABOT: DESIGNING A MATERIAL

HANDLING SYSTEM WITH SIMULATION

PROBLEM •• Use model throughput and turn-around-time results to

compare the proposed performance of Alert Innovation’s
Walmart wanted to evaluate the suitability of the Alphabot® concept before Alphabot® with other industry-leading Automated
making a financial commitment to its development. Alert Innovation had already Storage and Retrieval Systems (ASRS) and Goods-to-
made static spreadsheet calculations for the project but agreed with Walmart Person (GTP) technologies.
that the spreadsheets could not be relied upon due to system complexity
and the variability of order demand and execution. They tasked MOSIMTEC, a Simulating the material handling system would help understand the true
simulation consulting firm, with designing a material handling simulation model cost of rolling out the system in the real world and identify store-specific
for an independent technology feasibility assessment. The goal was to: deployment requirements.

•• Understand the throughput and turnaround time capabilities

of the Alphabot® system during peak customer demand periods
and assess service levels. SOLUTION

•• Understand any potential performance weaknesses of the Walmart’s initial goal was to make a go/no-go decision on the Alphabot® project
Alphabot® system with realistic demand data and variability. launch. Within seven weeks, MOSITMEC was able to learn the system, design
initial control algorithms for bot decision making, build the material handling
•• Identify the best configuration of the racking structure, simulation model, analyze results, and present findings to Walmart leadership.
automated bots, and each-picking workstations required for a
variety of store profiles. In the final delivered model, Walmart managers could specify different inputs,
like the number of bots and their length, width, acceleration, and speed in
•• Compare the capital expenditure requirements predicted by different areas. Physical racking configurations, like the number of aisles and
the model vs. the business case spreadsheets. levels, the space between levels, and the number of workstation tiers, and

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 WALMART’S ALPHABOT: DESIGNING A MATERIAL HANDLING SYSTEM WITH SIMULATION

other physical components of the system were all configurable. Control logic
parameters were also made available to allow Walmart to run further analysis.

After completing the independent analysis of system capabilities, MOSIMTEC

transitioned the AnyLogic material handling design model to Alert Innovation
for long-term use in fine-tuning software control algorithms for eventual
production deployment.

OUTCOME

By estimating equipment requirements needed to meet various turn-around-

time thresholds, the outputs from the initial material handling design model
informed the business case for deploying Alphabot® more widely. The model
showed that Alphabot® would pick 95% of online grocery orders in less than
eight minutes, with an average pick time under five minutes. The model also
determined which system designs would produce the largest ROI.

Walmart and Alert Innovation launched a proof-of-concept pilot of Alphabot® at

a Walmart supercenter in Salem, New Hampshire in March 2019.

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B ECO M E A
S U CC E S S F U L
CO N S U LTA N T I N
A N Y LO G I C
 BECOME A SUCCESSFUL CONSULTANT IN ANYLOGIC

BECOME A SUCCESSFUL CONSULTANT IN ANYLOGIC

Simulation modeling is a powerful tool for analyzing and developing complex
business systems that can provide unique strategic and operational insight and
decision support. But how do you get started?

If your organization has not used simulation modeling before, it can be difficult
to know where to begin. AnyLogic has many resources to help ease development
and understand the important factors that need to be considered. To get
started quickly, it will be an advantage to have a background in areas related
to systems analysis and integration, industrial engineering, or manufacturing
process engineering. For advanced features, it will also help to have some
knowledge of programming.

To read further into how simulation modeling is being used by companies to

solve complex challenges, download our Multimethod Simulation Modeling for
Business Applications white paper.

For those who wish to start by trying the software, AnyLogic PLE offers a free
way to begin. You will find tutorials with accompanying models included in
the application. There are also how-to videos, how-to blogs, webinars, and, for
inspiration, case studies from sixteen industry verticals.

Of course, when needed, you can call on the AnyLogic support team. They are
experienced in working with commercial simulation models and in working
with application partners. Do not hesitate to contact us directly for help with
implementing an AnyLogic simulation modeling solution.

20
 CONCLUSION

CONCLUSION
Consultancies use simulation when working on client projects, helping clients “In my opinion, AnyLogic is one of the most flexible and
tackle unforeseen challenges, creating new tools for clients, and conducting efficient simulation tools on the market, that can be applied
specialist research. In all cases, simulation modeling complements the specialist for solving operational and strategic tasks in a wide range of
knowledge of the consultants with data analysis possibilities not available with industries, including retail and logistics.”
simple spreadsheet-based or linear programming methods. Simulation modeling
allows its practitioners to tackle complex challenges and provide clear insights. – Andrey Semenov, Sr. Manager, Supply Chain
Management, Deloitte
Consultants reduce the need for organizations to develop specialist in-house
knowledge, they speed up solution development, and they help fully realize Using AnyLogic, consultants apply simulation modeling to many different
the benefits of simulation modeling. Consultancies often find organizations are challenges, helping businesses in all kinds of industries. Challenges involving
looking for external help with simulation modeling and, for many organizations, business and social processes, industrial facilities, supply chain, transport, and
consultants are the primary way to access the full benefits of advanced more. Increasingly, client solutions demand cloud-based implementations and
simulation modeling. machine learning integrations. With AnyLogic, consultants are meeting these
demands and empowering their clients with tools for doing better business.
Applied well, simulation modeling offers consultancies and organizations
an alternative to the traditional methods of spreadsheet-based analysis or The field of simulation modeling continues to develop, and it is necessary to
linear programming and is superior when developing solutions for complex stay up to date with the current trends of multimethod modeling, cloud-based
systems and processes. simulations, and new AI integrations. If simulation modeling is not yet a core
competency, there has never been a better time to get started.
AnyLogic multimethod simulation software combines the three main modeling
paradigms: discrete event, system dynamics, and agent-based. Combining these AnyLogic leads the field of general-purpose simulation and, when facing a broad
methods allows systems to be modeled in detail and without compromise. range of challenges, AnyLogic is the only choice.

Specific AnyLogic libraries also assist modeling. The Material Handling Library,
Process Modeling Library, Rail Library, Road Library, and Fluid Library combine to
help capture the details of a system.

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ADDITIONAL White Papers

Case Studies
RESOURCES
Videos

Books

Download AnyLogic Simulation Software

Seminars and Training

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CONTAC TS
TH E AN YLOG IC COM PANY

[email protected]
Contact your local office >>

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