Seminar on New Technology for Supply Chain Planning and Scheduling:
Executive summary
Objective
Supply Chain Planning is about making a
forward plan, which maximizes profit and/or minimizes cost. Supply
chains are large and complicated - and getting more so - and the
problem often has to be decomposed into two smaller problems so
that it can be solved within a reasonable time frame. These sub-problems
are called the planning problem and the scheduling problem.
The planning problem consists of high-level
decisions about what products to make and where they should be made.
The scheduling problem is more detailed and addresses how to make
the products.
These problems are normally best solved
by different technologies. The planning problem is amenable to mathematical
optimization, also known as mixed integer programming (MIP); the
scheduling problem is more amenable to constraint programming (CP).
This creates a situation where different models have to be built,
different technologies have to be used to solve the problem, and
a degree of iteration is required to arrive at a solution.
In simple terms, the objective of LISCOS
was to find a way to solve the supply chain planning problem in
a better way using a combination of mathematical optimization and
constraint programming technologies. This technology could subsequently
be made into a component and made available to systems integrators
and OEMs who build supply chain planning solutions and products.
The Opportunity
The market for supply chain planning is
estimated at $3 billion and expected to grow to $4 billion in 2006
(source: AMR). The market wants technology that is effective, easy
to implement and cheap to maintain. A technology that is effective,
integrated and easy-to-use will be very attractive, particularly
for SMEs, which still present a large potential market for Supply
Chain Planning.
Participants
The Results
LISCOS, as a concept, has been proven in
diverse applications in all four industrial partners. The partner
case studies give details, but in summary the results are:
- The technology solves the problem, producing
plans and schedules that are practical
- Problems that could not be solved can
now be solved, and for those that could be solved, solution times
have been significantly reduced
- The supply chain planning process is
faster, making the partner more flexible and able to react to
changing circumstances and new opportunities
- In one case, a production limitation
has been removed raising capacity by approximately 10%
Further Work
It is recognized that the LISCOS technology
is a prototype. Based on the positive outcome reported here, the
technology partners, COSYTEC and Dash, are planning to build a software
product that can be used as a component within supply chain planning
products and solutions.
Designed for use by non-experts, this product
will enable OEMs and systems integrators to build supply chain planning
products and solutions quickly with a minimum of programming.
The presentations and case studies are available
for download from the Client Area of our website (username and password
required). If you have not currently have a username and password,
please click here to see if you qualify
for access.
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