Importance of Scoping in a Supply Chain Modeling project

Scoping is the most critical part of a Network modeling project ,however, it is not assigned the importance it deserves when Network modeling projects are planned. There is so much focus on other phases like data collection, analysis & validation, Baseline development etc. that the importance of this critical phase is overlooked (even though it…

Challenges in Implementing an Inventory Policy

Conceptually, implementing an Inventory policy seems straightforward.  All you have to do is to categorize your products (say, using ABC Classification) and then define an Inventory Policy for  each category/class . However, in the real world, there are various challenges that you will encounter when defining Inventory policies. Before we do a deep dive into those policies, let us…

Leveraging Cost time profiles for process diagnostics and improvement

Cost Time Profiles (CTPs) can help you document and visualize the synergies of cost and time information of a process. It is a great tool for process diagnostics and improvement as it can help you identify activities that create value as well as ones that create waste. The best way to illustrate the value of…

Using Regression Analysis in Transportation Analytics- A Use Case

Recent trends indicate a surge in application of predictive analytics methodologies in the Logistics and transportation domain. Regression analysis, which is a widely used predictive analytics tool, can sometimes also be used to evaluate the key variables that are driving your transportation costs and can provide some really useful insights. Below is an example from…

Incorporating service levels in Network design

In a Network design context, service levels are usually measured by transit time or distance. So for example, if you plan to provide same day delivery, you can translate this into distance. Assuming that the max drive time will be 8 hours per day and the average speed is 50 miles per hour, the distance…

Using Greenfield Analysis for long term strategic network design

A Greenfield analysis can be a great way to get started for long term strategic network planning. A Greenfield analysis can tell you what will be the optimal locations for your Distribution network, based on your new customer demand footprint. This can help you select candidate locations for a detailed Network design exercise. Let us…

Leveraging Geographical Risk Mapping in Supply Chain Design

Supply Chain Network design exercises are sometimes so focused on achieving cost efficiencies, that they overlook a crucial aspect of Supply Chain design-factoring various risks in your Supply Chain design analysis. With Supply Chains going global, organizations sometimes need to look at multiple countries in a region( say Asia) to find the optimal location(s) for their…

Commonly used Route Optimization Scenarios: A Cheat Sheet

Route Optimization (RO) is an operational planning exercise that has the potential to generate significant cost efficiency opportunities. If you are a Transportation executive looking to leverage RO  but are not familiar with what are some of the commonly used RO scenarios, this post will give you a very brief high level understanding of four commonly used RO scenarios….

Linear and Mixed Integer Problems for Non Practitioners

As a non practitioner, you may have heard jargons like Mixed Integer programming, Integer programming etc. when interacting with your modeling team. This post intends to describe what these terms mean, in a simplified way using an example. For our example, we will use the scenario shown in the diagram below. There are two plants…

Modeling Bracket Pricing

Many commercial Supply Chain packages (like Llamasoft) don’t  allow you to define different price for the same product. If you are developing a model to capture bracket pricing, you can use the Transportation policies table to define the bracket prices. Let us take a simplified example where you have a supplier and a customer (You). The…