Quantitative principles for supply chains - Lecture 1.6

00:54 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


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.