Directorate of distance education

Brief Summary
Thus, with the goal of converting nonexperts to more knowledge 
consumers of models and modeling systems, we provide in later chapters a 
detailed introduction to mathematical modeling of supply chain decision 
problems. We also provide a brief exposure to algorithms for optimizing 
these models. The mathematical development uses algebraic methods that 
are taught in high school, which should render it no more painful to read-
ers than their experiences during a typical algebra class in years gone by.

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Notes
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A more subtle, related point is that good models and modeling 
systems expand the consciousness of managers and analysts regarding 
decision options and methods for improving supply chain design 
and operations. Their expanded consciousness relies on translations 
of qualitative and quantitative concepts from diverse management 
disciplines into modeling constructs employed by a modeling system. 
These disciplines and the relevant concepts are discussed briefly in the 
following section and in greater detail throughout the book.
Many of the ideas presented in this book stem from our experience in 
projects where optimization models were applied. Of particular relevance 
are applications of an off-shelf modeling system, called SLIM/2006, for 
analyzing strategic and tactical supply chain problems. The principles used 
in constructing and applying this system and the connections between 
its optimization models and diverse management disciplines provided a 
cornerstone to our thinking.
Self Assessment Questions
1. Diagram the DEP-GARD supply chain. What stages are adding 
value? What stages are not?
2. Using the primary DEP suppliers (60 percent of business) what is 
the minimum performance cycle for the supply chain diagrammed 
above? What is the maximum?
3. Can the performance cycle be improved through use of the 25 and 
15 percent suppliers?
4. If you were Tom Lippet, what changes would you make in DEP’s 
operations? Why? What problems do you foresee as you try to 
implement these changes?
5. Assuming you can make the changes mentioned in question 4, 
how would you “sell” Richard Binish on DEP’s next bid? What will 
likely be “q2ualifying criteria” and “order winning criteria”? Will 
these change over time? What does this suggest about supply chain 
management?
6. What should be the role of Supply Chain Management?
7. What do you mean by supply chain management?
8. What are the components involved in supply chin network?

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Notes
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9. Explain Supply Chain Strategy Building Blocks
10. Explain the types of Manufacturing Strategy in supply chain 
building Blocks.
11. What do you mean by channel strategy in supply chain building 
Blocks?
12. Explain the Strengths and Weaknesses of Supply Chain Strategy 
Building Blocks.
13. What do you mean by Bench Marking?
14. Explain the advantages of Bench Marking.
15. What are the forms of Bench Marking?
16. What do you mean by Gap analysis?
17. Write down the Key Actions involved in Benchmarking.
18. Describe the Performance Measurement in Supply Chain 
Management.
19. What are the decision phases in a supply chain?
20. Explain Supply Chain Models and Modeling Systems.
21. List out the types of descriptive models.
22. Briefly explain forecasting models.
23. What do you mean by simulation models?
24. Explain the concepts of normative models.

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Notes
178