Quantitative principles for supply chains - Lecture 1.6

While supply chains can’t be characterized by definitive quantitative laws - unlike electromagnetism - general quantitative principles can still be observed. By “general”, we mean applicable to (almost) all supply chains. Uncovering such principles is of prime interest because they can be used to facilitate the engineering of numerical recipes intended for the predictive optimization of supply chains, but they can also be used to make those numerical recipes more powerful overall. We review two short lists of principles: a few observational principles and a few optimization principles.

Timestamps

00:00 Introduction

02:25 On the nature of progress

05:26 The story so far

06:10 A few quantitative principles: observational principles

07:27 Solving “needle in a haystack” via entropy

14:58 SC populations are Zipf-distributed

22:41 Small numbers prevail in SC decisions

29:44 Patterns are everywhere in SC

36:11 A few quantitative principles: optimization principles

37:20 5 to 10 rounds are needed to fix any SC issue

44:44 Aged SCs are unidirectionally quasi-optimal

49:06 Local SC optimizations only displace problems

52:56 Better problems trump better solutions

01:00:08 Conclusion

01:02:24 Questions from the audience