The whole idea here is to think of the entire supply chain as a system that interacts with itself and with external factors. In this video we aim to understand what is a variable, what do I make a decision on, and what is a constraint? What do I have to live within? When you think about this system in this perspective, it allows you to think of what you can control, and why things get complex.
Here's a simple supply chain with some functional silos that we just talked about. We've got Purchasing, Warehousing, Inventory Management, Material Handling, Order Processing, Transportation and Customer Service. Now your role there, within the silo of transportation can be broken down into kind of a math program form, where you've got an objective that I either want to minimize or maximize. The objective is to deliver at the lowest transportation cost.
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