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Abstract

Supply chain managers are used to dealing with uncertainty, but the business environment has become more complex and less amenable to traditional approaches to preparing for the unexpected. For example, managers tend to use historical data to construct a singular view of the future when evaluating strategic possibilities. Such a view is too limited because it fails to take account of the many ways in which events can unfold. MIT Center for Transportation & Logistics is developing a solution: future-focused supply chains. The new approach to managing uncertainty enables managers to consider multiple possibilities by simulating possible outcomes, aligning these scenarios with the company’s strategic goals, and implementing change as rapidly as possible.