GlossaryEN1 min readUpdated: Jun 17, 2026
Risk Event Simulation
Risk event simulation is a computational analysis method that models potential disruption scenarios in logistics and supply chain operations — such as delivery delays, capacity failures, or demand spikes — to quantify their impact on costs, service levels, and processes.
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Source: https://www.cips.org/knowledge/procurement-dictionary/risk-event-simulation
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Logistics Concept
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Risk event simulation is a computational analysis method that models potential disruption scenarios in logistics and supply chain operations — such as delivery delays, capacity failures, or demand spikes — to quantify their impact on costs, service levels, and processes. Stochastic techniques like Monte Carlo simulation are commonly applied, running thousands of scenarios with varying input parameters. Planning teams use the results to size safety stocks, qualify alternative suppliers, or design contingency workflows. The key advantage is the ability to stress-test rare but high-impact events — a port strike, a border closure, a cold chain failure — before they occur in live operations.
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