Cyber–physical systems are developed to meet the need to improve process flexibility, optimality, and transparency through Digital Twin (DT). Unfortunately, the application of DT is still limited in practice, and there is no standard way to achieve integration. An Asset Administration Shell (AAS) appears as a promising concept for realizing DT in a standard manner. A literature review shows that most studies only reached static DT and only considered a few specific assets, especially unmovable ones. This study contributes to DT development by proposing 3D-based computer simulation technology as dynamic DT based on the AAS Framework. The proposed concept enables DT to conduct dynamic monitoring, optimization, and direct controlling. A smart warehouse in Taiwan is used to verify the proposed concept. Assets considered include Automated Guided Vehicles (AGVs), Operator, Conveyor, Forklift, and Storage Rack. AAS structure, simulation model built in FlexSim software, and system integration architecture have been constructed. Two advantages of using simulation for DT are demonstrated: multi-objective simulation–optimization for AGV capacity planning and creating dynamic dashboards. Based on the proposed concept, industry 4.0 scenarios can be integrated comprehensively.