Decision support in logistics systems strategic planning

Logistics systems strategic planning involves simultaneous decisions about the supply chain configuration, about the number, size and location of manufacturing and logistics facilities, about markets and clients served by each facility, about the selection of transport mode, and about the mission of each facility (regarding product mix, markets, technologies, etc.). This paper addresses the difficulties associated with modelling this type of problems and presents STRATOVISION, a decision support toll that uses visual interactive modelling techniques and incorporates a number of models and solution techniques (optimisation, heuristic and visual interactive what-if simulation). Its modelling, option generation and alternative scenarios evaluation capabilities are briefly described. A real case study based on a real life study carried out for a pan-European organisation is also presented. This case demonstrates the advantages obtained by using STRATOVISION’s capabilities for modelling the entire organisation supply chain and for evaluating solutions always from the total logistics cost perspective, including procurement, production and distribution.