Design of six sigma supply chains

Abstract

The development of six sigma supply-chain networks to describe and quantify supply chains with sharp and timely deliveries, is discussed. The design of six supply chains can be formulated as a mathematical programming problem, opening up a rich framework for studying supply-chain design optimization problem. In a multistage supply-chain network , the inventory optimization (IOPT) problem seeks to find optimal allocation of the lead time variabilities and inventories to individual stages. The solution of the problem offers rich insights into inventory-service levels tradeoffs in supply-chain networks.