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Modeling Systems
Rohit Sindhwani
Optimization models
Transactional IT
Analytical IT
Data, Models and Modeling systems
Efficient Frontier C
Supply Chain Cost ($)
B
B1
A
B2
1 2 3 4
Customer Service measured in maximal delivery time(days)
Types of models
Descriptive Models
Modeling practitioners develop to better understand
functional relationships in the company with outside
world
Forecasting models
Predict demand for the companys finished products, the cost of
raw materials or other factors
Cost relationships
Describe how direct and indirect costs vary as functions of cost
drivers
Resource utilization relationships
Describe how manufacturing activities consume scarce resources
Simulation models
Describe how all or parts of companys supply chain will operate
over time
Continued..
Normative models
Process for identifying norms that company
should strive to achieve
Also referred to as Optimization models or
Mathematical Programming models
Optimization Model
Supply
Transaction
Chain
al
Descriptive Models Decision
Databases
Database
The Value Chain
Firm Infrastructure
Human Resource
Support activities
Management
Information Technology M
Technology Development A
R
Value Chain Management GI
Demand Management N
Inboun Corporate Financial
Operations Outbou Marketi Services
d Management
nd ng and
Logisti Logistic Sales
cs s
Primary Activities