[2] Typically, supply-chain managers aim to maximize the profitable operation of their manufacturing and distribution supply chain.
The advantage of this approach is that it can be applied to data aggregated at a fairly high level (e.g. category of merchandise, weekly, by group of customers), requiring modest database sizes and small amounts of manipulation.
The technical ability to record and manipulate larger databases more quickly has now enabled a new breed of supply-chain-optimization solutions to emerge, which are capable of forecasting at a much more granular level (for example, per article per customer per day).
This is generally achieved by continuing to add time-phased requirements until the loads meet some minimum weight or cube.
Optimization solutions are typically part of, or linked to, the company's replenishment systems distribution requirements planning, so that orders can be automatically generated to maintain the model stock profile.
The companies publish case studies that show how clients have achieved significant and measurable benefits in terms of reduced inventory and lower logistics cost levels, while typically maintaining or improving customer service through better predictability and improved availability.
Kokoris notes that a supply chain optimization initiative can represent "an untapped opportunity to realize increased short and long-term cash flows and cost savings".
At the same time regional centers, strategically located, provide overnight shipments to the maximum number of customers.