BUS 660 Grand Canyon University Supply Chain Discussion

Nov 2, 2023, 1:48 PM

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In supply chains, linear optimization models emerge as powerful techniques for improving efficiency in supply chains. Through these models, it becomes easy to address physical and abstract network problems in many ways. These ways are production planning and scheduling, optimizing transportation routes, demand forecasting, and supplier selection and sourcing.

In addressing physical problems, linear optimization models are utilized in production planning and scheduling. The models play a critical role in determining the production level of each product by considering essential factors such as demand changes, production capability, and resource constraints. As a result, the models minimize production expenses, improve on-time delivery, and utilize idle resources, thereby leading to supply chain efficiency (Rajak et al., 2022). Concerning optimization of transportation routes, linear optimization models have been used to establish the most cost-effective approach to transporting goods. By considering varying elements such as capacities, demand, and transportation costs, the model helps establish the optimal supply networks and quantities for moving goods (Rajak et al., 2022). This model reduces transportation costs, enhances timely delivery, and boosts efficiency within the supply chain networks. In addressing abstract network problems, linear optimization models predict the demand and aid the allocation of the needed resources accordingly. By considering historical data and market patterns, the models enable businesses to make accurate decisions about distribution, inventory, and production, minimizing risks linked to over- and under-production.

Conclusively, linear optimization models streamline the supply chains by enhancing efficiency. Through these models, a business can predict or forecast the demand in the supply chains and inform the appropriate allocation of resources. Also, the models have helped organizations mitigate costs and delayed delivery time to boost supply chain efficiency. Therefore, linear optimization models stand as the most effective approach to enhancing the efficiency of supply chains.

References

Rajak, S., Vimal, K. E. K., Arumugam, S., Parthiban, J., Sivaraman, S. K., Kandasamy, J., & Duque, A. A. (2022). Multi-objective mixed-integer linear optimization model for sustainable closed-loop supply chain network: A case study on remanufacturing steering column. Environment, Development and Sustainability, 24(5), 6481-6507.

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