What do you optimize in your Supply Chain?
In one of my earlier blogs , I had introduced Oracle Strategic Network Optimization as a tool to optimize your supply chain. Well, the primary objective is to deliver a consistent, flexible, efficient, sustainable, Supply Chain which results in an optimized output that considers all trade-offs such as customer delivery, cost, risk, lead time, tax, carbon footprint, etc. Please refer to the link below:(http://www.infosysblogs.com/oracle/2009/05/linear_programming_models_orac.html#more)
To start with, the elements in the Cost bucket which are considered for Optimization are Landed Cost, Expedite Cost, Inventory Carrying Cost and Move Cost Estimator. Looking at the Optimization criteria, there are elements like Quality, Delivery Performance, Strategic Alignment, Carbon Footprint and Business Rules and Constraints which are taken into consideration while solving the Model (in most cases it is a Linear Programming Model).
Oracle Strategic Network Optimization can address almost all the elements except the Carbon Footprint piece (which is slated to be incorporated in future releases).
This is an interesting product to look out for!!!
