Robust Supply Chains – From Supply Bottlenecks to Proactive Measures

We develop models for the analysis and optimization of supply chains: Could potential long-term disruptions at suppliers be compensated? Where do risks accumulate? How can costs and risks in the supply chain be reduced simultaneously?

Supply chains span all continents and are therefore prone to disruptions caused by accidents, natural disasters, and miscalculations.

Analysis: How Robust Is Your Supply Chain?

Our models objectively assess the impact of long-term disruptions on your supply chain. We ask key questions such as:

• Is the supply chain sufficiently diverse?
• Is there sufficient contractually agreed reserve capacity at suppliers?
• How fast can alternative suppliers or preliminary products be utilized?

In short: Are the current risk prevention measures sufficient? Is your supply chain robust?

Optimization: Tailor-Made Counter-Strategies

In addition, we develop algorithms to optimize potential action plans with regard to the residual risk of material bottlenecks as well as their respective costs.

• How can the risk of material shortages be further reduced by optimizing the measures?
• Which combination of measures achieves the best cost/risk ratio?

Holistic Planning – Making Risks Visible

We were able to demonstrate that material purchasing and the risk of material bottlenecks must be viewed holistically. After all, if you only buy from the cheapest supplier, you can end up in an undesirable, risky dependency.

For a globally operating manufacturer of consumer goods, we develop robust multi-criteria optimization processes for material purchasing and risk avoidance. Methodologically, we rely on mixed integer programs and solve complex min-cost-flow problems – for a more resilient and efficient supply chain.