Industry Solution Sheet: Supply Chain

Challenges and Capabilities
There are many different types of companies (frommanufacturers to retailers to logistics, MRO, and otherservice providers) from many different industries
operating in the supply chain space, but they all face
the same fundamental challenge: Keeping supply anddemand in balance.
This may sound simple in theory, but in reality, aligning
supply and demand is a major challenge for companies
due to:The complexity, volatility, and disruption
throughout today’s global supply chain
landscape – which is made up of intricate andinterconnected supply, production, distribution,and retail networks spanning the world.
The uncertainty and risk inherent in today’s
supply chain dynamics – which are prone tosevere and sudden fluctuations on both thedemand side and the supply side.
Increasing operating costs and intensecompetition for market share – which put
immense pressure on profit margins.
To keep supply and demand in balance and deliverproducts and services to customers in the most efficientand profitable manner possible, companies today needto leverage the most powerful data-driven, analyticsbased technologies – and, without a doubt, mathematical optimization is one of those technologies.

Efficient
Optimize your operational efficiency andautomatically balance the tradeoffs between
conflicting business objectives (such as
maximizing profitability and customer satisfaction and minimizing costs and risk).
Leading companies around the globe and acrossnumerous industries use mathematical optimization
technologies – in a vast array of different applications –to optimize their supply chain planning, decision making,and operations.
With mathematical optimization, you can:Make dynamic, data-driven decisions that optimize your company’s efficiency and profitability.
Attain visibility, agility, and control over yourend to-end supply chain network.
Achieve your business goals by balancing costand service-level tradeoffs – simultaneously
satisfying customer demand and spurringbottom-line growth.
Transform your supply chain from a source ofcosts into a source of competitive advantage.

With mathematical optimization, your company caneffectively manage your supply chain by becoming:
Reactive
Utilize your real-time data to make optimalbusiness decisions – so that you can react
and respond rapidly and effectively to changing
conditions and disruptions across your end-toend supply chain.
Proactive
Use your historical and real-time data as well
as forecasts, and what-if scenario analysis
to optimally design and configure your supply
chain network – so that you can make the best
possible strategic and tactical decisions andproactively identify and handle uncertainty
and risk.

Gurobi Optimization in collaboration with Professor Haitao Li, PhD

Industry Solution Sheet: Supply Chain
Opportunities for Optimization
Mathematical optimization is used by companies today
to optimize many different strategic, tactical, and operational planning and decision-making processes acrosstheir end-to-end supply chain operations including:Strategic• Supply Chain Network Design• Transportation Mode Selection• Supplier/Vendor Selection• Labor Strategy Optimization• Yield and Revenue Management• Capacity Planning

Tactical• Inventory Optimization/Positioning/
Safety Stock Optimization• Maintenance Planning/
Predictive Maintenance• Production Planning• Supply Planning• Demand Sensing/Forecasting/Planning• Project-Based Planning• Order Fulfillment Planning• Spare Parts Inventory Planning• Sales & Operations Planning

Business Benefits
Companies utilizing mathematical optimization
technologies to manage their supply chains are able
to realize numerous business benefits including:• Better resource utilization• Greater revenue growth• Reduced costs (foroperations, inventory,procurement, workforce,equipment, etc.)• Shorter planning
cycle times• Improved profitability
and ROI• Improved inventory turnover and fewer stock-outs• Optimized operational
efficiency• Greater supply chain 		
visibility and agility• Better OTIF delivery
performance• Better cross-functionaland end-to-end supply
chain alignment• Higher customersatisfaction• Risk reduction/mitigation• Workforce/Shift Planning• Replenishment Planning

Operational• Vehicle Routing• Workforce Scheduling/Rostering

Example Customers
Here is a selection of Gurobi customers that use mathematical optimization to revolutionize their supply chain
operations:• Resource Allocation/Utilization• Project and Machine Scheduling• Logistics/Shipment Planning and Routing• Real-Time Dispatching

For more information, visit Gurobi.com, email us at info@gurobi.com, or call +1 713-871-9341