IBM Decision Optimization
aeortiz 2700024WMF Tags:  in virtal commerce supply chain scm linked optimization linkedin user group ilog ibm management 3,649 Views
Join our monthly IBM ILOG Supply Chain Management Virtual User Group (VUG) sessions. These 1-hour meetings are a quick way to brush up on your IBM ILOG supply chain modeling skills, meet other people using the products, ask questions to the community, and learn about what's new. These sessions will be led by our experts and have plenty of time for discussions and Q&A.
May 4th 2001:
Topic: "Applying Supply Chain Analytics: Benefits of a Central Group"
This talk addresses the value firms can achieve by deploying advanced supply chain analytics and how a group should be structured. We will use case studies and recent events to highlight the value from business analytics such as network and inventory optimization. We will discuss how 3M Corporation is organized to deploy this capability.
Join our LinkedIn Community to receive updates, more detailed information, and Dial-up/Web Meeting access.
May 4th - Wednesday
June 1st - Wednesday
August 2nd - Tuesday
September 1st - Thursday
October 7th - Friday
November 2nd - Wednesday
December 2nd - Friday
IBM has announced a new release of IBM ILOG LogicNet Plus XE, the industry leading supply chain network design and planning tool.
IBM is committed to Analytics and a Smarter Planet and this solution fits nicely with this strategy:
For example, it allows retailers, CPG, chemical, wholesalers, transportation and manufacturing companies to make smarter facility location decisions, smarter territory assignments, smarter sourcing and production planning decisions, and smarter seasonal build strategies.
Many customers confronted with unprecedented risk and volatility in their business, now use IBM ILOG LogicNet Plus XE as a regular part of their business to make better decisions . Ever expanding Integration capabilities makes this easier to achieve.
The new release continues with our tradition of providing industry leading features combined with ease-of-use. Some of the new release features include:
- Enhanced capabilities for modeling manufacturing processes and inventory
- Enhanced ease-of-use though new mapping capabilities, and expanded reporting.
Derek Nelson, the product manager had this to say:
"Early response to the new release has been very positive. The improved ease-of-use and ease-of-integration is helping LogicNet Plus become a standard part of many company's on-going planning processes. Furthermore, this release features some innovative new technology. We are excited to see the continued IBM investment pay off with a substantial new release for our customers. As always, if you have feedback on the product, we would be happy to hear from you."
Use Optimization Techniques for Complex Decision Support: A DecisionBrain Case Study in Container Terminal Logistics
Length: 1 hour
Next Session: June 25, 2014 at 07:30 Pacific, 10:30 Eastern, 16:30 CET
Speaker: Filippo Focacci, CEO, IBM Business Partner DecisionBrain
Session Topic: Use Optimization Techniques for Complex Decision Support: A DecisionBrain Case Study in Container Terminal Logistics
One of the challenges of large Container Terminals is to smoothly coordinate Quay-side and Yard-side operations during the container load/discharge process. Taking advantage of the IBM Optimization platform and technology, DecisionBrain (www.decisionbrain.com) successfully implemented an innovative decision support solution to help one of the largest Container Terminals worldwide to closely coordinate operations and reduce Yard Clashes. In this presentation we share the key ingredients of this successful implementation: project approach, solution architecture, technical approach and best practices.
We look forward to your participation. Please contact Kitte Knight at firstname.lastname@example.org for an invitation to this Webinar.
aeortiz 2700024WMF Tags:  smarter commerce decision optimization_supply_chain... nrf2014 1 Comment 3,259 Views
There's a big difference between impulse buying and purposeful buying. Most of the Retail customers we met with at NRF 2014 were focused around products designed for purposeful buying behaviors and how to create a seamless customer experience in a very fragmented omni channel world.
"Impulse" product lines are very different - they appeal to the emotional side of consumers. So, how will specialty retail brands compete effectively in an increasingly digital, e-commerce world? As automated checkout and online purchasing increase, how can these Retailers continue to exploit the emotional "buy" when products like candy, for example, are no longer in front of us as we shop? From a retailer's point of view, impulse items bring in high margins—50 percent or better on some SKUs—and have a quick turn over rate (homechannelnews.com/article/impulse-item-guide). How can they make up for this loss of revenue? Thoughts on this?
Length: 1 hour
Next Session: December 11, 2013 at 07:30 Pacific, 10:30 Eastern, 16:30 CET
Speakers: Mary Fenelon, Development Manager, CPLEX Optimization Studio, IBM
Session Topic: What's New in CPLEX Optimization Studio 12.6
A new release of CPLEX Optimization Studio will be generally available on December 6. In this presentation, you will learn about the new features and performance enhancements, including:
IBM Decision Optimization Virtual User Group Meetings provide you with updated and useful information about our products and how you can get the best value for your organization from our optimization technology and solutions.
These meetings are being held electronically with presentations by our product management and development subject matter experts. The sessions will run for approximately one hour, with about 45 minutes of presentation material and 15 minutes for open questions and answers. Our goal is to provide a forum for you to:
We look forward to your participation. Please contact Kitte Knight at email@example.com for an invitation to this Webinar.
IBM ILOG Optimization Virtual User Group Date: 4th Wednesday of every month @ (07:30 Pacific, 10:30 Eastern, 16:30 CET)
Format: Webinar Length: 1 hour
Next Session: June 26, 2013
Speaker: Roland Wunderling, CPLEX Optimizer Architect
Session Topic: Learn about the latest ILOG CPLEX Optimization Studio release: version 12.5.1
Specifically we will discuss:
Remote objects allow users to create CPLEX objects on remote computers and use them transparently as if stored on local computer. Local applications using remote object functionality can not only benefit from performance increases in version 12.5.1 but also exploit more powerful remote hardware.
IBM ILOG Optimization Virtual User Group Meetings provide you with updated and useful information about our products and how you can get the best value for your organization from our optimization technology and solutions. These meetings are being held electronically with presentations by our product management and development subject matter experts. The sessions will run for approximately one hour, with about 45 minutes of presentation material and 15 minutes for open questions and answers.
Our goal is to provide a forum for you to:
We look forward to your participation. Please contact Kitte Knight at firstname.lastname@example.org for an invitation to this Webinar.
aeortiz 2700024WMF Tags:  technology what-if ilog optimization redbook scenarios scheduling odm odme planners enterprise ibm best decision 3,697 Views
Want to build more effective business applications using
optimization? Check out the new IBM Redbook Optimization and Decision
Support Design Guide: Using IBM ILOG Optimization Decision Manager. Down load the pdf at no charge from http://www.redbooks.ibm.com/redpieces/abstracts/sg248017.html?Open.
If you’ve ever tried to build an application that business decision makers can use, you know that having a good model of the system you want to manage isn’t enough. And while you need the best optimization solving technology, line-of-business managers and executives demand more. They want to see the data supporting the decisions, they want to try what-if scenarios to validate the proposed options, and they want planners and schedulers to collaborate across the corporate organizational lines. And if you want to deploy your solution, you need to satisfy a bunch of requirements and standards from your IT department.
The Design Guide addresses these issues with concrete guidance and practical examples derived from IBM’s long experience developing and deploying analytical decision support solutions in many organizations. Going beyond how to formulate good models, the Guide shows you how to design data integration, business user interfaces, client/server architectures, taking advantage of IBM’s ODM Enterprise to streamline development. The Guide illustrates the steps using a concrete example derived from a real-world logistics application. Plus the Guide explores two detailed case studies, one in manufacturing and the other from insurance.
Need to convince your management that optimization can work for your organization? The Design Guide can give you the credibility you need.
Down load the pdf at no charge from http://www.redbooks.ibm.com/redpieces/abstracts/sg248017.html?Open.
Today, we announced the release of a new version of our multi-echelon inventory optimization product, Inventory and Product Flow Analyst (IPFA) v7.6
We have put a lot of investment in IPFA so that it fits within the workflow of an organization. That is, it is important to be able to answer strategic inventory optimization questions, but it is even more important to maintain the right inventory targets. You maintain these targets with strong work flow capabilities.
By maintaining the right inventory targets at all levels in the supply chain, you can avoid lost sales, minimize late shipments, minimize expediting, and keep inventory to a minimum. And, since IPFA directly accounts for demand forecast error and supply variability, you get value even when your forecasting is not very robust. For more details on the strategic importance of inventory optimization, click here.
MichaelWatson 270002K5FS Tags:  logicnet_plus_xe academic_initiative network_design 4,261 Views
We've recently written an educational book on network design. This book is aimed at both those who do network design projects for a living and for use in the classroom.
For those who do these studies, you will develop better intuition on how these models are solved and new ideas for modeling your supply chain. It can also be a good guide for people who are new to the discipline within your organization.
For those of you who teach, this book will introduce your students to the topic and provide them with a wide ranges of realistically sized models to work on. You can use with the IBM ILOG LogicNet Plus XE software from the academic initiative to allow your students to learn the topic with the use of commercial software.
The publisher, FT Press, recently posted the book to Amazon and Barnes & Noble. We are still in the final stages of editing and getting ready for production. The book will be ready to ship in August. Click here for a link to the book on Amazon. Click here for a link to the book on Barnes & Noble
If you would like more information on the book, please contact us and we will be happy to help answer any questions you may have.
LogicNet Plus XE now Available in German, Spanish, Portuguese (Brazil), Korean, Japanese, Simplified Chinese, and Traditional Chinese
Today, the latest version of IBM ILOG LogicNet Plus XE was released. This new version of LogicNet Plus XE has been translated into 7 languages. It is available in
This is a major step for LogicNet Plus XE. It gives our clients around the world greater access to network optimization capabilities. LogicNet Plus XE already has many innovative and powerful features like multi-objective optimization. Click here for more details on the features of LogicNet Plus XE.
This release has been posted. If need help accessing it, please contact us.
ThomasDong 270002GM71 Tags:  smarter_planet analytical_decision_suppo... optimization advanced_analytics cplex opl odm_enterprise 4,244 Views
Last week, IBM hosted another Connect to Win event for business partners at it's northern California IBM Innovation Center. The event focused on business analytics and featured IBM Distinguished Engineer Jeff Jonas, a dynamic and highly sought after speaker. Among his many accomplishments, he is known for developing the technology used by the Las Vegas gaming industry featured in the book "Bringing Down the House", the recent movie "21", and numerous documentaries on the Discovery Channel, Learning Channel and the Travel Channel.
Following the keynote by Jeff Jonas, IBM hosted a panel discussion. Some 30+ partners came to learn how to leverage analytics in their offerings, and naturally a wide spectrum of analytics sophistication was represented, generating a vibrant discussion on everything from Smarter Planet to Artificial Intelligence to Decision Management.
The panel was made up of:
During the panel discussion I had the opportunity to first share IBM's vision for business analytics, using an adaptation from Tom Davenport's book "Competing on Analytics", to explain why, how and where IBM has invested $14B since 2005 in business analytics. Several partners thanked me afterwards for presenting this visual, as it provided them with a blueprint for how they might evolve their own analytics capabilities.
In fact, this gave me an opportunity to define a new software category for many - Advanced Analytics, which applies statistical and mathematical techniques to provide forward-looking capabilities, beyond the insight commonly extracted from historical data and information. It can be viewed as a subset of Business Analytics, and provides an interesting convergence opportunity, between the IT-based "analytics" world, and this emerging world previously reserved for specialists in statistics and Operations Research-related disciplines (Management Science, Industrial Engineering, Financial Engineering, Systems Engineering, Applied Mathematics, etc.). As the business world evolves its analytics agenda beyond business intelligence and performance management capabilities, the desire to not only look back in time, but forward in time as well, is driving awareness for Advanced Analytics - and creating many opportunities for SPSS and ILOG Optimization at the point of business impact.
To learn more about Advanced Analytics for a Smarter Planet, start here:
MichaelWatson 270002K5FS Tags:  ilog cognos wall_street_journal spss business_analtyics 3,784 Views
A recent Wall Street Journal, "Products, Products Everywhere," argued that companies do not need so many varieties of similar goods.
Manufacturers are offering more and more products by changing the "sizes, brands, colors, fabrics and flavors."
But, "instead of improving profitability, these tactics often lead to bloated product portfolios that raise a company's costs, reduce supply-chain efficiency, confuse consumers and lead to shortages of popular products."
The article offers tips for reducing the number of SKUs. But, this problem is difficult to tackle-- it involves many different groups and decisions can impact the top line and ability to compete for shelf space. At IBM, our advanced analytics solutions can add to the analysis.
Cognos helps with the Business Intelligence, allowing you to understand the demand and sales price of each SKU in each market. SPSS allows to determine which SKU's actually sell together and estimate what would happen to overall demand if SKU's were reduced. That is, if you eliminate an SKU, what will be the likely uptick in the demand of the remaining products. ILOG can help determine the true landed cost, supply chain efficiencies, and safety stock impact of a reduced SKU count.
Combined, these technologies could help you make the correct decisions on how many SKU's to eliminate and which new varieties to the market.
MichaelWatson 270002K5FS Tags:  inventory_optimization inventory_positioning inventory supply_chain ilog 4,048 Views
Correctly positioning and buffering inventory can help you create a more flexible supply chain with lower costs.
In the military, it is common practice to pay suppliers on a "cost plus" basis. Effectively, this makes all the suppliers a "make to order" location. That is, the suppliers can only make product when there is a firm order. There is no mechanism for the supplier to make product in advance, sit on safety stock, and provide faster service.
Keeping helicopters flying is not trivial. They are made up of many parts and operated in tough conditions. Many of the key parts(drive shafts, sycn shafts, blades) require many sub-components and must be made with specialized materials in a high-precision manufacturing environment.
The supply chain for these key parts can be very long (measured in many months), and it is expensive to keep enough of these items around as spare parts.
With the current system, each key part had to either be stored in inventory as safety stock (waiting to be needed) or the the military had to wait for the supply chain to produce another (creating a backlog of demand and a helicopter that was grounded). Neither alternative was great.
A better solution is to optimize the placement of strategic buffers in this supply chain. The chart below on the left shows the existing supply chain. The yellow box on the right represents the customer (the military) and a key part. The gray boxes to the left represent all the steps in the supply chain needed to make this particular part. You can see the complexity of the supply chain. In the baseline, the entire buffer is held by military, represented by the red bar.
In the optimal case, the suppliers hold buffers. These buffers are seen by the red bars. The inventory optimization identifies where and how big these buffers should be. Now, the military can keep the helicopters flying with much less money tied up in working capital (or worse, with many helicopters not being able to fly).
Of course, implementing this solution is not trivial. Contracts with the suppliers have to be re-worked to allow them to create and maintain the safety stock buffers.
Great New Book by David Simchi-Levi-- Operations Rules: Delivering Customer Value Through Flexible Operations
David Simchi-Levi has a new book coming out in August, 2010, Operations Rules: Delivering Customer Value through Flexible Operations. See the Fall Announcements from MIT Press page 13.
Here is excerpt from the review on the MIT Press website:
Simchi-Levi identifies the crucial element in a company's success: the link between the value it provides its customers and its operations strategies. And, he offers a set of scientifically and empirically based rules that management can follow to achieve a quantum leap in operations performance.
Flexibility, says Simchi-Levi, is the single most important capability that allows firms to innovate their operations and supply chain strategies.
David Simchi-Levi is the founder of LogicTools which is now part of the IBM ILOG Optimization and Supply Chain Solutions group. He is still actively involved in IBM.
This group offers solutions in network optimization, inventory optimization, detailed production scheduling, routing, container optimization, shelf space optimization, and other areas that can help companies implement the ideas from his book.
Webcast: Building A Smarter Supply Chain - Positioning Your Business for Economic Recovery and Growth
Register today: http://www.sctvchannel.com/Videocast_Building_Smarter_Supply_Chain.php
Join IBM Optimization and Supply Chain experts on March 30, 2010 for the webcast: Building a Smarter Supply Chain: Learn how to position your business for recovery and growth with better supply chain decision-making using next generation supply chain optimization.
Is your business positioned for recovery? Are your supply chain strategies flexible enough to manage a rapidly changing and volatile economic landscape? Join IBM ILOG Optimization & Supply Chain experts to learn how optimization technology supports flexible business strategies that enable companies to reduce costs today and prepare for growth tomorrow.
MichaelWatson 270002K5FS Tags:  analytics scm retail supply_chain ilog optimization 3,228 Views
Yesterday, IBM published its 2009 annual report. In the Letter From the Chairman, IBM lays out its growth opportunities for 2010. It lists fours strategic areas for investment. Analytics and Smarter Planet are two of those four areas.
For Analytics, there is great amount of data available and organizations who take advantage of this information will unlock tremendous value. The letter notes:
IBM is moving quickly to capitalize on this promise. We have built the industry’s premier analytics practice, with 4,000 consultants, mathematicians and researchers, as well as leading-edge software capabilities
Of course, this fits with the opportunity IBM sees with its Smarter Planet initiative. In fact, the letter points out some benefits retailers have seen.
Four leading retailers have reduced supply chain costs by up to 30 percent, reduced inventory levels by up to 25 percent, and increased sales up to 10 percent. They’ve done so by analyzing customer buying behaviors, aligning merchandising assortments with demand and building end-to-end visibility across their entire supply chain.
A good example of how this IBM strategy comes together is through our shelf space optimization solution. In this solution, we help retailers place their products in the right place in the store-- from how the store should be laid out, how much space should be given to each products, and where the products should be on the shelf (for example, determining which products are at eye-level). This solution leverages our advanced optimization capability (to determine the placement), our advanced statistical capability (to predict and analyze detailed sales data), and our rules technology (to maintain the system since different regions and stores may be unique in their requirements).
Gartner RAS Core Research Note G00172071, Andrew White, 17 November 2009
"This research updates users on IBM’s overall supply chain management (SCM) product strategy, which has matured in terms of positioning and product management/strategy since its most recent Ilog acquisition in 2008. We highlight the finalized IBM SCM product portfolio, and highlight how this rationalized portfolio aligns with the SCM trends IBM exposed in its most recent Executive Survey, which also aligns closely with Gartner’s research."
To read the note visit: http://imagesrv.gartner.com/media-products/pdf/reprints/ibm/external/volume4/article31.pdf
In an earlier blog, we mentioned a talk by Mars and Wrigley with IBM. The talked covered how Mars and Wrigley worked with IBM to analyze their combined network and identify savings.
The talk was covered by Bob Ferrari, and his blog entry hit the same highlights stressed at the end of the presentation. Specifically,
1. You can find savings with network modeling. The team quoted that they were able to find $10M in savings just in the initial modeling. In fact, the speakers stressed the tremendous value in just building a baseline model. This allows you to uncover savings, but to also challenge preconceived ideas.
2. Sensitivity analysis is valuable. After narrowing down choices, the team did analysis on the impact of higher oil prices and carbon emissions to rank the solutions.
Bob Ferrari noted that this work can be done with remote teams:
The speakers also mentioned that through the years they were able to build various models that focused on different parts of their supply chain from distribution to manufacturing.
Andrew Reese 270002Q78Q 1,997 Views
David Simchi-Levi talked about volatility and flexibility in the supply chain, putting a definition around those terms, and trying to quantify the impact of flexibility, as a foundation for helping companies understand how they can invest in flexibility in their supply chains.
David noted the IBM ILOG supply chain applications, which include Strategic Supply Chain Design & Planning (LogicNet Plus, LNP; Inventory Analyst, IA; Product Flow Optimizer, PFO; Transportation Analyst, TA); as well as more tactical-level planning, e.g., for safety-stock setting for ERP (Inventory Planning); and Production Planning and Detailed Scheduling (Plant PowerOps, PPO).
Today's supply chain challenges are well known: global supply chains with long lead times, combined with rising and shifting customer expectations. In addition, as global manufacturing costs rise in different regions (increasing labor costs, e.g., in China by about 20% annually over the past five years versus 3% in U.S.), the optimal supply chain five years ago may longer be applicable.
Logistics costs also have been increasing as a percentage of cost of goods sold, rising 15% as a percentage of GDP in the U.S. from 2003 through 2007with rising oil costs, rail capacity pressure, truck driver shortages and security requirements. Transportation costs have increased 47 percent in the last five years, but inventory costs have also increased, by 62 percent in the same time period, e.g., due to longer supply chains (more inventory in motion and more safety stock to meet more demanding customers). David also noted that one strategy that companies have used in the face of higher transportation costs, larger shipment sizes (to take advantage of economies of scale), have had the effect of increasing inventory costs.
Risk levels have increased in the supply chain, a result of successful implementations of Lean, outsourcing and offshoring. Lean supply chains make it more difficult to meet high service levels with less inventory, while outsourcing/offshoring creates more opportunity for disruption in the supply chain. Sustainability also has become more important - less so as oil prices have declined, but that is likely to change as oil prices increase again. At the same time, the supply chain has seen unprecedented levels of volatility, e.g, as a result of commodity price volatility (e.g., high volatility in price of oil in 2008, with 39 days when the price of oil changed 5 percent or more from its previous day close).
David posited that flexibility is one of the top supply chain capabilities in which companies can invest to increase their ability to respond to all the above challenges. Flexibility is the ability to respond to change, e.g., demand volume or mix, labor cost, exchange rates. The objective is to reduce costs and reduce the amount of unsatisfied demand and improve capacity utilization, with no or little penalty on the service-level side. Flexibility can be achieved through Product Design (a focus in the high-tech industry, especially, e.g., a modular, Dell-like product architecture, standardization, postponement, substitution); Process Design (e.g., flexible work force, Lean, flexible contracts [e.g., options contracts], outsourcing, dual sourcing); or System Design (e.g., capacity redundancy, manufacturing strategy, distribution strategy).
Focusing on System Design, David looked at an example focusing on balancing transportation and manufacturing costs, coping with high forecast error and utilizing resources more effectively. The goal is to achieve all (or most of) the benefits of "full flexibility" with a small investment that provides a small level of flexibility. David ran through two case studies of flexibility.
The first case study focused on a manufacturer in the food and beverage industry. Initially, the company employed a dedicated manufacturing strategy, with each product family manufactured in one of five domestic plants, and manufacturing capacity was in place to target 90 percent line efficiency for projected demand. The company had five manufacturing plants with varying average labor costs, and eight DC locations. The company was focused around manufacturing costs, e.g., by producing high-volume product in its lowest-cost facility. To analyze the benefits of adding manufacturing flexibility to the network, the company analyzed scenarios that provided for varying degrees of manufacturing flexibility, up to full flexibility, where each plant could produce each product line, and everything in between. An analysis of plant to warehouse shipping costs showed, of course, that full flexibility produced lower transportation costs, but an analysis of the impact on total supply chain costs showed that just investing in a little more flexibility (by adding flexibility at all plants to produce two product lines) produced 80 percent of the benefits of flexibility with less impact on manufacturing costs, while avoiding the higher costs of investing in full flexibility (ability to produce all five product lines at each plant). But the company also wanted to understand the impact of potential changes in demand volume, so they considered three different scenarios based on growth for different product lines. In each case, adding the minimal level of flexibility outperformed the baseline and even "full flexibility" in terms of KPIs like demand satisfied, shortfalls, cost/unit and average plant utilization.
In further analyzing the benefits of adding a small amount of flexibility, David noted that in the above example, the full benefits of what he calls "2 flexibility" (ability to have each plant product two product lines) are possible when there is a "long chain" that connects all the plants in the company's network, such that a change up or down in demand for a given product will not cause a disruption in the company's ability to meet that demand. This example requires much more in-depth explanation that is possible here, but I hope to be able to write about this phenomenon later.
David also ran through a case study of optimizing S&OP at a bottling company operating 57 plants in the U.S. and 103 plants worldwide, driving 240,000 miles a day to meet customer demand. Implementing the flexibility described above, the company created a process that brought together sales, supply chain, marketing, manufacturing in collaborative planning process. Results: The company reduced raw materials and supplier inventory from $201 million to $195 million; saw a 2 percent decline in the growth of transport miles even as revenue grew; and added 12.3 million cases available to be sold due to reduction in warehouse out-of-stocks, adding up to the equivalent of adding 1.5 production lines without actually any investment in plant.
David also spoke about redundancy in the supply chain and the challenges and benefits of scenario analysis for optimizing a supply chain network and setting supply chain strategy. He discussed a case study involving a manufacturer of consumer packaged goods. The company had 40 manufacturing facilities, but was looking to rationalize its plants while also managing risks in its supply chain. The company looked at how many plants they could close without impacting their ability to meet demand and came up with a plan to close several plants that would result in savings of $40 million to the bottom line. However, this plan left plants very distant from customers, resulting in a higher lead times. In addition, the attendant higher levels of plant utilization left the supply chain exposed to higher levels of risk from disruptions. The challenge for the company was to build into the model scenarios that take into account different sources and levels of risk, based on the number of plants that the company ultimately would decide to maintain. David noted that the optimal solution in terms of total supply chain cost was not necessarily the optimal solution in terms of risk management. He pointed out that total supply chain cost is invariably "flat" around the optimal strategy, so the company could look at closing a fewer number of plants than the "most optimal" solution in order to mitigate risk.So, in summary, a small amount of flexibility can often provide large benefits, supply chain costs are flat around the optimal strategy, and positioning inventory effectively can make a big impact through taking advantage of risk pooling.
MichaelWatson 270002K5FS Tags:  strategic supply chain pl... supply chain optimization supply chain strategy logicnet plus network design and planni... network design 1,796 Views
In a recent conversation with AGRANA, a large sugar, starch, and fruit company based in Europe, we were reminded of the value of network design on an on-going basis.
AGRANA reports using LogicNet Plus both for strategic network design studies impacting the next 1-2 years, but also for the day-to-day issues that come up. These kind of daily studies can be done in the context of the full model or as simple stand alone models.
This daily use of network modeling helps a firm keep on top of its supply chain to continuously control and minimize costs or improve service.
AGRANA reported on the aspects of LogicNet Plus that makes all this possible:
Interestingly, this use of LogicNet Plus fits with IBM's Smarter Planet initiative: helping firms make better decisions with the data they have and providing tools that allow firms to do this faster and easier.
MichaelWatson 270002K5FS Tags:  supply chain strategy supply chain planning network design supply chain optimization logicnet plus network design and planni... green logistics strategic supply chain pl... 1,424 Views
Recently, a member of Bayer’s Supply Chain Optimization team spoke on how to create a greener supply chain. It was stressed that the carbon emissions were only one part of the equation. The analysis had to include other factors such as taxes, exchange rates, oil prices, sourcing, service time, and, of course, costs.
As an example, a project in China is mentioned for the pharmaceutical products: Previously, the supply chain strategy relied on air freight. After many different scenarios were tested, Bayer found a solution with 3 DC’s that reduced lead times, reduced carbon emissions, and kept costs neutral.
Besides projects in Asia and Japan, the Bayer team has used the tool in the US and Europe.
It was stressed that all of these projects are complex and involve careful analysis of the trade-offs.
In fact, it was mentioned that “some questions you want to raise can’t be answered without a tool like LogicNet Plus.”
Please contact us if you would like more details on this case.
Length: 1 hour
Next Session: September 24, 2014 at 07:30 Pacific, 10:30 Eastern, 16:30 CET
Speaker: Diego Olivier Fernandez Pons, Director Europe of IBM Business Partner Knowledge Touch
Session Topic: Optimization in Retail: Bringing Innovation to Users that are Not Early Adopters
Some retailers are known for their successful use of innovative technology like Best Buy and Zara. Logistics and supply chain departments have eagerly adopted optimization technology to improve their warehouse and transportation operations, inventory levels and service. Yet optimization solutions have failed to penetrate line-of-business departments, human resources, or middle and top management by having failed to show them the value they could get. We will share our experience deploying optimization solutions for these departments in the Retail industry.
Shalabh_Prasad 270003UAQB Tags:  decision ibm constraint programming optimization ilog cplex 1,897 Views
Length: 1 hour
Next Session: May 28, 2014 at 07:30 Pacific, 10:30 Eastern, 16:30 CET
Speaker: Philippe Laborie, Principal Scientist – Constraint Programming, IBM
Session Topic: Modeling and Solving Scheduling Problems with CP Optimizer
Last year an overview on CP Optimizer was provided by Paul Shaw at the Virtual Users Group forum. In the upcoming session, we will follow-up on the original topic and focus on using CP Optimizer to address scheduling problems. We will initially cover modeling concepts related with scheduling in CP Optimizer. Using examples we will then provide details on tools, functionalities and tips for speeding-up the development of your scheduling models and improving their efficiency.
David Simchi-Levi, professor at MIT and Chairman at OpsRules to Deliver Keynote on Supply Chain Risk at Smarter Commerce Global Summit 2014
aeortiz 2700024WMF 698 Views
Commerce and Supply Chain Professionals who attend the Optimization and Supply Chain keynote, Conquering Supply Chain Risk: A New Approach, on Tuesday, May 13th @5:45pmEDT will learn how a new Risk Management Indexing process helps model the complete set of issues or risks that can affect your supply chain performance.
Supply Chain and Commerce Professionals are facing a growing array of risks. Supply chain disruption, fluctuating transportation costs, uncertainty in demand volume and mix, commodity price volatility, increase in labor costs in developing countries and the pressure to reduce inventories are just a few of the challenges that companies are struggling to overcome today and will likely face in the future. In such an environment it is important to have an organization flexible enough to adjust quickly to changing market conditions. David will discuss practical implementation methods for the supply chain in the ‘age of eCommerce’ and illustrate the impact of innovation and optimization through a number of case studies from some of his clients, including Ford Motor Company.
Add Session CMSC-1521 to your agenda today!
Length: 1 hour
Next Session: April 23, 2014 at 07:30 Pacific, 10:30 Eastern, 16:30 CET
Speaker: Sofiane Oussedik, IBM Decision Optimization Technical Sales & Solutions Leader
Session Topic: Efficient modeling with OPL - Optimization Programming Language Tips and Tricks
The OPL modeling language provides a compact and straightforward code that is much easier to maintain than general-purpose programming languages (C++, Java, etc.). However a common concern as with any descriptive modeling languages is that the savings in development time may come at the cost of excessive computing overhead (memory consumption, increased run-time). Proper design is key to produce an efficient model that will scale to solve large model instances. This presentation mainly describes best practices and techniques to compress models and data so that the run-time performance and memory consumption of OPL applications are efficient.