passage require analysis and breakdown

As stated in the book, a supply chain is the set of all interconnected resources involved in producing and distributing a product. (Anderson et al., 2016) Supply chain is an essential part of a growing business because it connects all production, acquisition, transportation and distribution of products. The transportation case study in the book explained how the company was able to minimize cost while maximizing profit by identifying which location will be most profitable while costing the least in supply chain model.

The book used a linear optimization model to solve the transportation problem, maximizing efficiency in the delivery of goods from the distribution center to the corresponding demand (Anderson et al, 2016). The transportation problem involves of a network of arcs and decision nodes. The problem identified constraints which assisted with identifying the most profitable way to ship goods and services and the relationship between one node to another in an efficient manner. The location meeting the set objective was chosen.

There is also an environmental factor involved in the supply chain process. Vehicles used to transport the goods are emitting carbon into our environment which causes greenhouse effects. Linear programing can help identify the amount of carbon being deposited into the atmosphere and how we can help reduce the impact of these particles by using environmentally friendly fuel products.

Linear programing can help optimize crop growth in agricultural by allocating space with a greenhouse to maximize profit. (Basham & Hanan, 1983). The cost of production, fuel for heating, labor and materials. These constraints help optimize the crop volume and demand for a certain crop. (Basham & Hanan, 1983) Linear programing is part of almost any area of supply and demand, which is an essential part of supply chain model.

Many supply chain problems have intangible items that can also be solved through linear programing. Customer satisfaction is tied to the demand of a product and how efficiently we meet that demand predicts the future growth of the company. Anderson et. al (2016) state that linear programming problems related to supply chain can affect tangible and intangible problems. Take inventory management for instance, the amount of inventory for future use depends on the inventory turnover rate as well as how much is left over.