passage require analysis and breakdown

Network optimization is an incredibly important part of an organization. This process can minimize time frames it takes to complete tasks as well as save the organization capital if the distribution network is truly being optimized. One example of a network model that is used to optimize distribution is network flow problems. MIT (2018), states that The objective is to find the minimum-cost flow pattern to fulfill demands from the source nodes. Such problems usually are referred to as minimum-cost flow or capacitated transshipment problems. To transcribe the problem into a formal linear program (MIT, 2018). Network flow problems can save organizations capital and locate weak areas in the distribution chain that could be modified for optimization.

MIT also talks about the Shortest-path problem. MIT (2018), suggests we can interpret the shortest-path problem as a network-flow problem very easily. We simply want to send one unit of flow from the source to the sink at minimum cost. At the source, there is a net supply of one unit; at the sink, there is a net demand of one unit; and at all other nodes there is no net inflow or outflow (MIT, 2018). This is hopefully taking the minimum cost it takes to distribute the product, and now is focusing on getting the product to the destination in the shortest amount of time. This can save the organization distribution costs as well as increase the overall customer satisfaction. This could lead to future sales based on efficiency leading the way.

Lastly, MIT talks about critical path method during distribution. MIT (2018), states that The Critical-Path Method (CPM) is a project-management technique that is used widely in both government and industry to analyze, plan, and schedule the various tasks of complex projects. CPMis helpful in identifying which tasks are critical for the execution of the overall project, and in scheduling all the tasks in accordance with their prescribed precedence relationships so that the total project completion date is minimized, or a target date is met at minimum cost (MIT, 2018). This is probably the most important part of the distribution chain. Just like in my professional field of nursing, you might have 5 patients, but it is important to be able to deal with the most critical first to ensure the success of the day. If you focus on the less critical situations a patient could decompensate quickly and perhaps die. If an organization has a particular customer that purchases most of the product compared to the others on the route for distribution, they are the main customer that needs to have the most focus. Perhaps a variable such as a storm comes in an alters the predetermined route that is always taken, this model needs to be modified to ensure that the critical organization is still receiving their shipment. Always take care of the subjectively most important client first who benefits the organization, than follow suite from there.