Design of supply networks – Philips, Dorel, Heineken, Deli XL, Agfa
Reconsidering the supply network structure is part of the strategy decisions of many companies. Such a study always consists of a qualitative and quantitative argumentation. CQM uses AIMMS as a modeling tool for the quantitative part of these studies. In such a project scenarios are analysed and optimizations are carried out to find the supply network structure that best fits the companies requirements and constraints.
With AIMMS models, a project team consisting of supply chain experts from the client and CQM consultants will analyze several scenarios and the effect of changes in the supply strategy. Typical outputs of these models are the optimal number and location of production facilities and warehouses, the allocation of products to production facilities, the allocation of customers to warehouses, and the stock levels needed to provide effective customer service. This of course always in a balance between costs of production, transportation, warehousing, and net operating capital on the one hand and performance in terms of customer order lead times and product availablity on the other hand.