Simulation of warehousing and distribution systems

The modern world abounds in simulation models. Thousands of organizations use simulation models to solve business problems. Problems in micro logistics systems are a very important segment of the business problems that can be solved by a simulation method. In most cases logistics simulation models should be developed with a purpose to evaluate the performance of individual value-adding indirect resources of logistics system, their possibilities and operational advantages as well as the flow of logistics entities between the plants, warehouses, and customers. Accordingly, this scientific paper elaborates concisely the theoretical characteristics of simulation models and the domains in which the simulation approach is best suited in logistics. Special attention is paid to simulation modeling of warehousing and distribution subsystems of logistic system and there is an example of spreadsheet application in the function of simulated demand for goods from warehouse. Apart from simulation model induction and deduction methods, the description method and a method of information modeling are applied.