Supply chain benefits

Over the last few years, O.R. professionals have given a great deal of attention to supply chains and their behaviour. O.R. people have improved JIT systems, developed algorithms for distribution of goods, and much else. In Saturday's Indepenedent newspaper (27/Nov/2010, page 55) there was an amusing story of the consequences of improving supply chains.

The story reads: "The John Lewis quest for worldwide domination continues with another new initiative designed to ensure shoppers never leave their department stores. Retail Week reports that supply chain improvements have reduced the amount of space John Lewis needs for stockrooms these days, so it plans to turn some of them into beauty spas and hairdressers. It's even promising to install theatrical stages in some of its cafes so you can be entertained while taking a break from spending your money."

Retail Week had the original story in its issue dated 26th November.

The lesson for O.R. models of supply chains is that they need to consider what happens to storeroom space when the needs for buffer stock is reduced. These aspects of the system may not appear automatically in the supply chain model ... but evidently they should!

O.R. and the Infrastructure (2)

I'm sure that I shall return to the expression that "O.R. is the hidden science" many times. In the T.V. presentation of "Britain from Above" already mentioned, the presenter observed part of the distribution chain that supplies shops and (especially) supermarkets. In a throwaway remark, he mentioned the 15-minute time windows for collections and deliveries at many stores. And these are part of the world of the O.R. scientist. There have been numerous papers on vehicle routing, and many software companies employ O.R. staff to provide tools for scheduling vehicles with time windows. It is a testimony to the success of O.R. that these hidden tools work, and so everyone can take them for granted! Yes, even the best systems can go wrong, but when was the last time that you couldn't buy an everyday item of food in your local supermarket?