Question: Passage require analysis and breakdown In general, supply chains are designed to satisfy customer demand for a product at minimum cost (Anderson et al., 2016,
Passage require analysis and breakdown
In general, supply chains are designed to satisfy customer demand for a product at minimum cost (Anderson et al., 2016, p. 425). In the Optical industry, decentralizing manufactured products to distribution center across the globe is an important phase of servicing customers. Luxottica Group S.p.A., an international company doing business in multiply continents (i.e., Europe, China, and the United States), have over 2000 supply chains in over 150 countries (Luxottica n.d.). The decision-makers have the responsibility of developing supply chains and deciding where to produce the products, quantities, and logistical planning (P.425). Supply chain models, in conjunction with linear programming, help predict how best to solve the predicament.
But, to maximize efficiency and profit, they must develop models that create the shortest route possible. Luxottica has plants in Europe, Asia, and the United States; so, it's imperative to distribute the products manufactured from their various plants across the globe to distribution centers to meet customer demands. Part of the design is to maximize profit and minimize transportation costs. The linear programming model assists the decision-makers at Luxottica to accomplish that objective.
critically summarize the passage
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