A Digital Twin Framework for Business Transactional Processes in Supply Chains

Abstract An integrated framework for building a virtual replica of business transactional processes in supply chains is presented. The framework consists of two main components: a simulation module and an optimization module. Business processes are modeled as networks of queues through which requests (internal or external to the enterprise) can flow. The digital replica of the business processes creates value by providing a simulation platform upon which to: 1) test optimization strategies, 2) forecast potential delays in requests based on the current state of the real process and the historical data, 3) identify and mitigate bottlenecks, and 4) provide more accurate fulfillment dates to customers. The optimization can be performed offline or in real-time in a feed-back loop as the simulation is being executed. As an integrated simulation and optimization environment, the framework bridges and extends the literature in business process simulation and business process optimization, building upon previous work by the authors that was restricted to only business process scheduling in static deterministic environments. A case study is presented in which three mathematical programming models and a greedy heuristic are compared. A sensitivity study shows the value in using simulation to mitigate operational bottlenecks.