Thanks for letting us know! You'll no longer see this contribution
This article uses the phrase "linear programming". Keep in mind that a lot of supply chain problems will involve integer valued variables (unit quantities, on-off decisions, etc.). Thus, you will probably see terms like Mixed Integer Linear Programming (MILP) or Mixed Integer Programming (MIP) used more often than just Linear Programming (LP).
Thanks for letting us know! You'll no longer see this contribution
When tackling real-world supply chain challenges, start by understanding the problem and stakeholder priorities to ensure the solution development process aligns with business needs, rather than prematurely selecting specific methods like linear programming (LP) or mixed-integer programming (MIP). Assess current operations and openness to change, focusing on practical solutions over optimal ones, and choose the appropriate methodology based on complexity and data availability. Manage the expectation from the beginning so the solution doesn't come as a surprise and is unimplementable.
Thanks for letting us know! You'll no longer see this contribution
To optimize service and cost in a supply chain using linear programming (LP), we need to model the problem as a mathematical problem. The objective of this LP model is typically to minimize total costs while meeting service levels and other constraints such as capacity, demand, and delivery times.
Thanks for letting us know! You'll no longer see this contribution
I would start by defining the key variables: costs, demand, supply, and constraints like capacity or delivery times. I then set up an objective function, usually to minimize costs or maximize service levels, while ensuring that supply meets demand across the network.
Linear programming allows us to create a model that includes all these factors, enabling us to test different scenarios and identify the most efficient distribution strategy. We need to analyze the results, so as to make data-driven decisions that strike the best balance between cost savings and maintaining high service levels, ensuring we meet customer needs without overspending.
Thanks for letting us know! You'll no longer see this contribution
Objectives usually include minimizing cost- transportation and processing, minimizing late delivery, minimize unmet demand and maximize service level. Thatâs is done by insuring the availability of the material, sending them through the channels and sites that can handle that type of material, respecting capacities in shipping means and processing sites