Network Strategy Case Study

Description

Determine optimal supply chain network trading off service, costs, risks and sustainability. Consider your global and local capacities, costs, product flows, inventory and customer demand.

Sample questions this use case addresses

How can I explore new designs for my end-to-end supply chain?

Typical use case inputs

Demand and product data

Sites (existing, potential, new) and customers

Transportation lanes, volumes, capacities and costs

Production/sourcing volumes, capacities and costs

Facility capabilities

Service expectations

Transportation policies (service, mode, utilization, volume, costs)

Production/sourcing policies (mix, volume, capacity, utilization, cost)

Storage and handling policies (capacity, inventory turnover, cost)

Typical use case outputs

Make vs. buy decisions

Facility open/close decisions

Service policies

Sourcing policies

Production-distribution strategy

Network strategy value

The Network Strategy approach seamlessly integrates network optimization, transportation optimization, inventory optimization, discrete event simulation, and machine learning/AI algorithms in a common framework for decision support.

Customization

Customization Level Required: Low

Details of Customization

DDM

Low level of Implementation required if any. Customization may be required if you want to store detailed facility capabilities (e.g. which facilities produce or store which products), service expectations, network constraints in DDM.

Model Building

Low level of Implementation required. Use the Network Optimization AMB template as a starting point. Incorporate and model potential network capabilities and constraints for production, sourcing, transportation, inventory.