ECLIPS is a European research project addressing the state-of-the-art in supply chain management. It is aimed at minimization of total inventories through the whole supply chain, taking into account a product life-cycle, from its introduction into market, through a maturity phase, and finally to an end-of-life phase. In order to achieve this goal, simulation is used intensively in the ECLIPS project. From one hand, it supports supply chain management processes (e.g., optimization and decision making), thus providing conditions for minimization of inventories. From another hand, simulation provides a platform for testing algorithms and tools, being developed within the project. The paper discusses different aspects of using simulation in the ECLIPS project.