Cost Optimisation

Cost optimisation provides an integrated model of the supply chain decisions in relation to the major cost trade-offs to either minimise costs or maximise profit. Examples of the major decisions in these models include selecting locations, suppliers, equipment or processes, and modes of transportation for the flows through the supply chain. Cost optimisation models are very effective at narrowing down choices, using cost or investment to quickly filter out unacceptable options. Factors other than cost can be considered; for example, constraints affecting time/distance between locations at different positions in the supply chain network.