Optimization, Regression and Simulation: Widely used tools in Supply Chain Analytics

With Supply Chain coming to the forefront as a strategic function and as a competitive tool, organizations around the world are scrambling to gain deeper insights into their Supply Chains. World class companies are establishing Centers of Excellence that focus on leveraging Analytics across the Supply Chain.

Supply chain is a complex function and hence all three primary forms of Analytics-Descriptive, Predictive and Prescriptive can be extensively applied. However, there are three primary techniques that are widely used : Optimization, Regression Analysis and Simulation techniques.

The illustration below provides a summary of application of these techniques across the Supply Chain with examples of where they can be applied. Note that these are just examples of the above mentioned three techniques. There are additional tools as well that can and are being applied in modern Supply Chains today. Also, there are more applications of these three tools than shown in the illustration. The idea here is to give a flavor of the wide application of these three techniques across all the sub-functions within the broader Supply Chain function.

techniques

Disclaimer: This is a personal blog site and views and perspectives expressed here are solely my own and do not express the views or opinions of my employer.

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