Simulation is used extensively by Caterpillar Logistics Services, Inc. (Cat Logistics) to determine an appropriate strategy for achieving clients' inventory and customer service goals. Internally developed inventory management simulations, at the transaction and SKU level, help both to develop inventory / service strategies for potential clients and to determine the effect of a change in strategy for existing clients. Inventory management continues to be a significant contributor to the success of Cat Logistics. It is one service that distinguishes Cat Logistics from all other third party logistics providers; a distinction made possible, in large part, by Cat Logistics simulation technology.
C. Ann Goodsell, Thomas J. Van Kley