Supply Chain Optimization

Supply Chain Optimization Definition
Supply Chain: A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials; transformation of these material into intermediate and finished products; and distribution of these finished products to customers. (Source: Ganeshan & Harrison - Introduction to Supply Chain Management)

Optimization: An algorithm or process for determining the best solution among alternatives, or the extreme value of a variable or an objective function.

Supply Chain Optimization: An algorithm or process for finding the best configuration of a supply chain network.


Overview
Supply Chain Guru incorporates a powerful network optimization capability directly into its interface. You import or enter configuration data about your supply chain network into a Guru model (or work directly in MS Excel, Access, or using SQL).

Then, press the optimization button and Guru will automatically build and solve the network optimization model.

Results are automatically extracted and summarized into the Guru tables. You can quickly look at solution summaries, or dive down for an in-depth look at the details.

Guru has extensive scenario analysis capabilities to streamline the process of analyzing your results. You can use built-in scenario generation tools to quickly create numerous alternatives, and then use batch-run capabilities to optimize all of them automatically. Supply Chain Guru is the premier tool for the Supply Chain Strategy professional looking for maximum productivity, power, and efficiency.

Algorithm
Supply Chain Guru uses Mixed-Integer / Linear Programming (MIP-LP) to solve the extremely complex supply chain optimization problems. MIP-LP is a mathematically rigorous algorithm that is guaranteed to find the global optimal supply chain network structure. This is not a lightweight tool for surveys and supply chain learning games—Guru tackles the most complex and challenging applications in the industry.

Guru’s optimizer is “Industrial Strength”, and can be ported to run on 64 bit systems for even bigger problems. Additionally, Guru’s excellent and (over) educated supported staff helps its customers with their difficult models, often finding helpful techniques to tune-up the algorithms and make the models run even faster.

Key Modeling Features
In addition to the standard, commonly supported network optimization modeling components, Supply Chain Guru has additional capabilities making it the most unique and powerful network optimization package in the industry. Here are just a few of the many elements and constraints in Guru’s powerful network optimizer:

  • Facility sizing: set up “multi-level” facility cost-capacity curves
  • Use weight, volume, or quantity as the throughput basis for capacity constraints
  • Product specific conditional minimum and aggregate conditional minimum flows for true multi-modal transportation optimization
  • Detailed, multi-level BOM support
  • Manufacturing work centers and routings which can model multi-step production and value add processes for far more accurate capacity constraints
  • Ability to create custom constraints and view the model formulation directly

Highlight of Application Features
  • Geographical interface and mapping for visualizing results
  • Flow Chart-style interface for an interactive “Business Process” view
  • Table views and access to optimization details for a more in depth investigation into results
  • Batch running of optimizations: setup up 50 scenarios, and kick it off to run automatically!
  • Model Compare does direct comparisons of all model input and output tables, highlighting what exactly has changed from one scenario to the next



Supply Chain Optimization

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