118 Copyright © 2010, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. Chapter 7 Intelligent Simulation System for Supply Chain Event Management (SCEM) Barin Nag Towson University, USA Haiying Qiao SmartOps Company, Pittsburgh, USA Dong-Qing Yao Towson University, USA 1. INTRODUCTION Supply Chain Event Management (SCEM), some- times referred to as Supply Chain Process Manage- ment (SCPM), is defined by APICS (APICS, 2005) as the application of a special type of software that simulates, controls, and responds to exceptions in a supply chain. SCEM can provide active visibility, and perform the functions such as real-time moni- toring, measuring with key performance indicators (KPIs), notifying exceptions to decision makers, performing what-if simulation scenario analysis, and controlling unexpected events such as cancelled orders, supply disruption, and currency fluctuations, etc. The advantage of the application of SCEM is that connected processes can be monitored, even in a global context where the uncertainties are magnified, and that the processes can be modified if necessary (Christopher, 2005). In the global economy that is there today, the supply chain is global in nature and is becoming increasingly complex and dynamic. There are risks inherent in all stages of supply chain processes, from the supply side to the demand side (PRTM, 2005). As a result, global supply chain ABSTRACT In this chapter, the authors present an intelligent simulation system for supply chain event management for the purpose of designing and re-engineering the supply chain. The simulation framework mainly composes of component layer, process layer, intelligent execution layer, and output layer. The functional design of the layers is discussed with comments on the contribution of the simulation. Implementation issues are further addressed and an illustrative case study is reported. DOI: 10.4018/978-1-61520-605-6.ch007