Identify two key strategic decisions made by your current team, department, or organization. How could those decisions have been enhanced by optimization models?
Topic 3 DQ 1
Identify two key strategic decisions made by your current team, department, or organization. How could those decisions have been enhanced by optimization models? Support your rationale with evidence from readings or external research.
Expert Answer and Explanation
Major strategic decisions completed by my organization were inventory management and workforce scheduling. The core strategic decision made by the organization concerns the volume of the stock to keep relative to demand and other factors within the business control. The auto shop has been making these decisions based on historical data and trends. The shop made the strategic decision to use predictive models to come up with optimum inventory levels that prevent stock-outs or overstocking of inventory.
The other major strategic decision made by the shop concerns workforce scheduling. The auto shop has been assigning duties to employees based on the predicted workload. The organization shifted from the traditional process of using simple historical data to assign these employees their respective responsibilities. To boost the proper scheduling of duties, the auto shop incorporated an HR integrating system to ensure systematic assigning of responsibilities to workers.
The decision-making process of the auto shop has been enhanced using optimization models. The first technique employed by the organization is the linear programming model. This tool has been useful in coming up with a precise inventory policy (Becerra et al., 2022). The model attains this goal through the evaluation of demand forecasts, lead times, holding costs, and stock-out costs. Regarding work scheduling, the organization has employed an integer programming model. The system is instrumental in assigning employees their duties based on expected demand, skill levels, and availability (Brunner-Parra et al., 2022). By utilizing optimization models, the auto shop has been successful in coming up with cost-effective decisions, reducing waste, improving service quality, and boosting overall operational outcomes.
References
Becerra, P., Mula, J., & Sanchis, R. (2022). Sustainable inventory management in supply chains: Trends and further research. Sustainability, 14(5), 2613. https://doi.org/10.3390/su14052613
Brunner-Parra, C. F., Croquevielle-Rendic, L. A., Monardes-Concha, C. A., Urra-Calfuñir, B. A., Avanzini, E. L., & Correa-Vial, T. (2022). Web-based integer programming decision support system for walnut processing planning: The MeliFen Case. Agriculture, 12(3), 430. https://doi.org/10.3390/agriculture12030430
Topic 3 DQ 2
Find a current example of a linear optimization model used in your industry. Describe the industry’s needs, including any unique factors, how the linear optimization model was used, and the problem or challenge it addressed. Would you suggest a different model be used? Why or why not? Support your response with rationale from the assigned readings.
Expert Answer and Explanation
Auto shops have needs and unique factors, which linear programming aims to address. Examples of these factors include maintenance of optimal inventory to meet demand, efficient scheduling to minimize costs and maximize productivity, optimization of space to limit bottlenecks and delays, timely and efficient services to meet customer satisfaction and cost minimization to remain competitive. These factors mean sector players must utilize optimization models to address these issues. Linear optimization models have been critical in addressing the auto shop’s inventory management and workforce scheduling.
In the case of inventory management, the linear optimization model has been crucial in determining optimal order quantities and reorder points. Consequently, the shop has addressed its holding, stock-out, and ordering costs. The main inventory challenge addressed by the model was a reduction of inventory costs by maintaining optimal inventory levels. Moreover, the tool has been useful in scheduling mechanics’ duties based on their skills and availability. The tool was important in ensuring the availability of mechanics for each task, which reduced downtime and improved productivity.
Despite the linear optimization model being crucial in addressing inventory and work scheduling for the auto shop, there are some challenges that it cannot solve. Firstly, the model is unsuitable for non-linear relationships (Asghari et al., 2022). The solution would be to use non-linear optimization models. Additionally, linear optimization models are unsuitable for unpredictable scenarios and the most useful tool in this case is a stochastic optimization model (Chen et al., 2023). These scenarios are examples of cases where linear optimization models are not suitable.
References
Asghari, M., Fathollahi-Fard, A. M., Mirzapour Al-E-Hashem, S. M. J., & Dulebenets, M. A. (2022). Transformation and linearization techniques in optimization: A state-of-the-art survey. Mathematics, 10(2), 283. https://doi.org/10.3390/math10020283
Chen, L., Dong, T., Peng, J., & Ralescu, D. (2023). Uncertainty analysis and optimization modeling with application to supply chain management: a systematic review. Mathematics, 11(11), 2530. https://doi.org/10.3390/math11112530
Place your order now for a similar assignment and get fast, affordable and best quality work written by our expert level assignment writers.
Limited Offer: Use Coupon Code NEW30 to Get 30% OFF Your First Order
