OVERVIEW

How and when to manufacture products through multiple time periods for minimum cost or maximum profit through a network of raw material supply, manufacturing sites, storage sites, and customer locations (e.g., what plant should make what products at what time and in what quantity)?

OPTIMAL SUPPLY CHAIN PLANNING applications provide users operational and strategic guidance regarding their entire supply chain from acquisition of raw materials through delivery of products to market. An instance of the application can be as simple as deciding which warehouse ships to which customer or as complicated as a corporate expansion study including acquisition and divestiture of facilities. Savings or increased profits are typically 3% or more of total system costs.

An implementation of the OPTIMAL SUPPLY CHAINapplication is a determination of how to meet customer demands for products at various prices in the markets at minimum cost or maximum profit through a network of manufacturing and warehousing resources using myriad transportation links. Typical applications include multi-time-period weekly or monthly operations plans and annual budget studies.

Supply Chain planning problems are common in most industries. OPTIMAL SUPPLY CHAIN PLANNINGapplications exist for most problems in most industries.

CONFIGURATIONS, MODELS, AND DATA

Each model generates solutions for minimum cost or maximum contribution. Individual models can include the following activities:

  • Raw material purchase and shipment to plants
  • Production of products and intermediate products
  • Shipments of products and intermediate products from plants to warehouses
  • Shipment of intermediate products from plants to plants
  • Shipment of intermediate products from warehouses to plants
  • Shipments of products and intermediate products from warehouses to warehouses
  • Shipment of products from plants to markets
  • Shipment of products from warehouses to markets
  • Inventory of raw material at plants
  • Inventory of products and intermediate products at warehouses
  • Acquisition or divestiture of manufacturing or storage facilities

Each individual model includes activities for the data supplied:

  • Raw material costs and availabilities
  • Product Bill of Materials
  • Manufacturing Line and processing unit rates, capacities, and costs
  • Beginning inventory of all material and products
  • Plant and warehouse inventory limits, capacities, and costs
  • Product demands and prices at markets
  • Transportation costs and limits along all permitted shipping links

For detailed information about industry applications and access to our Products website, please contact us.