Supply chain planning is defined as synchronization of supply chain operations and the need comes from the fact that all operations have an effect on others:

• manufacturing quantities and timing of production depends on the replenishment orders from DCs


• transportation load sizes depend on the replenishment sizes and truck schedules


• procurement order quantities from the vendors depend on the production quantities and timing of production


• target service levels have an affect on the sales revenue, and safety stock inventory levels


• target safety stock levels have an affect on replenishment quantity and timing of orders

It is a complex system, not using optimization will yield inefficiency somewhere in the chain. Mathematical models determines the optimal levels of all supply chain activities to fulfill potential demand and service requirements based on customizable objective functions, such as

• minimization of total system-wide operations cost


• maximization of service levels


• minimization of operating assets, such as on-hand inventory


• minimization carbon footprint


• or a mix of list above or custom business priorities

References:
Arçelik
Carrefoursa
Korozo
Paşabahçe
Toros Tarim
Trakyacam
Unilever

SUPPLY CHAIN CONSULTANCY REFERENCES