Chapter12Decision-SupportSystems.pptVIP

Chapter 12: Decision-Support Systems for Supply Chain Management Contents Case study 1. Introduction 2. The Challenges of Modeling 3. Structure of Decision-Support Systems 4. Supply Chain Decision-Support System 5. Selecting a Supply Chain DSS 6. Summary Case study-Supply chain management smooths production flow Aerostructures Corp.’s A manufacturer of wings and wing components. At present: Rhythm – A Supply chain management system from i2 Technologies, Inc. Benefit: level out work flow Saves $500,000 of inventory costs. In the past: MRP-II system Shortage: Couldnt schedule any smaller jobs. Couldnt afford to let unfinished products sit around for too long because of 220 operations Difficult to order materials By this chapter Goal of software What types of decision support tools should be chosen? 1. Introduction Problems in Supply chain management are not so rigid and well defined that they can delegated entirely to computers. DSSs are used from strategic problems (logistic network) to tactical problems (assignment of products to warehouse / factory) DSS uses mathematical tools (Operations Research, Artificial Intelligence) DSS uses statistical tools (Data mining) and data warehouses. Framework for SCMS based on planning horizon. Strategic network design Supply chain master planning Operational planning (demand planning, inventory management, production scheduling, transportation planning systems ) Operational execution (enterprise resource planning, customer relationship management, supplier relationship management, supply chain management and transportation systems) 2. The Challenges of Modeling Model is the heart of any DSSs Major questions when modeling supply chains What part of reality should be modeled? On the one hand, model should include enough detail to represent reality. On the other hand, model should be simply enough to understand, manipulate, and solve. “Model si