Supply Chain Optimization
Definition
Improving supply chain efficiency and reducing costs.
Historical Background
2000s: lean supply chain management achieved efficiency gains.
Example
Every link from procurement to delivery must be optimized. Like relay race training.
Formula
Supply Chain Efficiency = Delivery Cycle / Order Cycle x 100%
Core Concepts
Balancing timeliness and cost through optimization of each link.
Extended Applications
Procurement: supplier consolidation; production: capacity planning, scheduling; inventory: safety stock, VMI; logistics: route optimization; information: data sharing.