IBM supply-chain network optimization workbench: an integrated optimization and simulation tool for supply chain design

ABSTRACT

The IBM Supply-chain Network Optimization Workbench (SNOW) is a software tool that can help a company make strategic business decisions about the design and operation of its supply chain network. The tool supports supply chain analysis with integrated network optimization and simulation capability. Mathematical programming models are used to first help identify some cost-effective scenarios from a large number of candidates. Optimization results are then converted to simulation models automatically for more detailed analysis with taking into account operational policies and uncertainties. The tool was applied to analyze both IBM's internal supply chains and external clients' supply chains. The combination of optimization and simulation demonstrates great value in real business cases.

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