A WRITE UP ON ‘THE APPLICATION OF OPERATION RESEARCH

TECHNIQUES IN SUPPLY CHAIN MANAGEMENT’

SUBJECT:
SUPPLY CHAIN, VALUE CHAIN & OPERATION RESEARCH
UNDER THE GUIDANCE OF:
MR. KISLAY KASHYAP

SUBMITTED BY:
SAPNA KUMARI (MFM/20/ 472)

2020-2022
DEPARTMENT OF MASTER OF FASHION MANAGEMENT

NATIONAL INSTITUTE OF FASHION TECHNOLOGY

1
ACKNOWLEDGEMENT
I take this opportunity to express my profound gratitude and deep regards to the subject
matter expert in Supply Chain, Value Chain & Operation Research and my dear professor Mr.
Kislay Kashyap for his exemplary guidance, monitoring and constant encouragement for
undertaking the assignment on,’ The application of Operations Research techniques pin Supply
Chain management. His guidance helped me in the part of research. I could not have imagined
having a better advisor and mentor for this subject. I would also like to thank NIFT Patna, for
providing me the opportunity to study in such a respected organization. By this I did lot of
research and came to know about so many new things. I am really grateful because I managed
to complete the assignment within the deadline set our faculty.
I also want to acknowledge the support and help I have had from my family and friends. I would
like to extend my deepest gratitude to all those who have directly and indirectly guided me. It
was inspiring and insightful at the same time learning about the different aspects of research
topic.

2
 TABLE OF CONTENT

Supply chain management……………………………………………………………………………………….4

Operation Research………………………………………………………………………………………….………5
Application of Operation Research…………………………………………………………..………………7-9
Conclusion…………………………………………………………………………………………………………………10
Reference………………………………………………………………………………………..………………………..11

3
SUPPLY CHAIN MANAGEMENT

An inventory network is characterized as the whole interaction of making and selling business
merchandise, including each stage from the stock of materials and the assembling of the
products through to their conveyance and deal. Effectively overseeing supply binds is crucial for
any organization wanting to contend.
Store network the board incorporates both actual conveyance and supply the executives.
Supply or material administration exercises center around the upstream segment of the
production network and are basically worried about providers and inbound coordination’s.
Actual dispersion exercises include that piece of the production network where work-in-
measure becomes completed merchandise and advances toward clients.

The inventory network incorporates the producer and providers, yet in addition carriers,
stockrooms, retailers, and clients themselves.

Inventory network the board is a bunch of approaches used to proficiently incorporate

providers, makers, stockrooms and stores, so that product is created and dispersed at the
correct amounts, to the correct areas, and at the opportune time, to limit framework wide
expenses while fulfilling administration level prerequisites.

The goal of production network the executives is to be proficient and savvy across the whole
framework', complete framework wide expenses, from transportation and dissemination to
inventories of crude materials, work in measure and completed merchandise, are to be limited.
In this way, the accentuation isn't on essentially limiting transportation cost or decreasing
inventories, yet rather, on adopting a frameworks strategy to store network the board. At long
last, inventory network the board spins around proficient incorporation of providers, makers,
distribution centers and store

Dealing with the store network requires a wide scope of strategies and standards. One method
of ordering store network the board investigation is to separate the region into the essential
part—inventory network plan (SCD), and the strategic/operational piece—production network
tasks or execution (SCE).

Store network configuration is the way toward deciding the store network framework—the
plants, circulation focuses, transportation modes and paths, creation measures, and so on that
will be utilized to fulfill client requests.

4
Store network execution is the way toward deciding answers for more strategic and operational
issues, for example, neighborhood stock polices and arrangement, assembling and
administration plans, transportation plans, and so forth in these occasions, creation and
transportation information are normally expected to change as indicated by a known likelihood
dissemination, while the foundation is expected to be fixed (or almost so). The time-frame for
the examination regularly ranges days, weeks or months, and spotlights on executing definite
transient plans.

OPERATION RESEARCH

An Operation can be characterized as a bunch of associated or interfacing exercises that are

vital for the event of an ideal result; the two exercises and result can be treated as
characterized factors in this arrangement of exercises.
• Activity Research id implied any formalized quantitative investigation whose object is to
improve productivity in a circumstance where 'effectiveness' is plainly characterized.
• "Operational Research is the logical investigation of tasks to settle on better choices."
• "The utilization of precise examination strategies for program dynamic to accomplish a
particular result".
• The OR strategy are valuable to realize how to lead and co-ordinate the different
exercises and activities inside an association, regardless of whether for creation of
merchandise or for offering types of assistance.
Operations Research can be basically characterized as examination of operations. Set of acts
done to get a wanted result can be named as operations. Furthermore, such errands should be
possible by man, machine, man-machine unit or by any association of the previous three. Some
essential qualities of OR then again are as per the following:
• Streamlining
• The reason for operation research is to accomplish the best exhibition under the given
conditions. Enhancement likewise includes looking at and narrowing down likely
alternatives.
• Recreation
• This includes building models or replications to try and test arrangements prior to
applying them.
• Probability and statistics

5
 • This incorporates utilizing numerical calculations and information to reveal
accommodating bits of knowledge and dangers, make dependable expectations and test
conceivable arrangements.
Logical technique for OR incorporates three stages, for example,
• The judgment stages
• The examination stages
• The activity stages
The interaction of tasks exploration can be extensively separated into the accompanying
advances:
• Recognizing an issue that should be settled.
• Developing a model around the issue that takes after real world parameters.
• Utilizing the model to determine answers for the issue.
• Testing every arrangement on the model and investigating its prosperity.
• Implement the solution for the genuine issue.
The field of operations research gives a very much wanted way to deal with dynamic than
standard programming and information investigation tools. Utilizing tasks research experts can
assist organizations with accomplishing total datasets then think about every single accessible
alternative and anticipate every single imaginable result and gauge hazard. Additionally,
operations examination can be custom fitted to explicit business cycles or use cases to figure
out which methods are generally fitting to tackle the issue.
Operations research can be applied to an assortment of cases, for example,
• Planning and time the executives.
• Metropolitan and agrarian arranging.
• Enterprise resource planning (ERP) and supply chain management (SCM).
• Stock administration.
• Network optimization and engineering.
• Packet routing optimization.
• Risk management.
Supply Chain Management can be characterized as the administration of stream of
merchandise and other administrations in an association and incorporates every one of its
cycles that changes crude materials into end results. It fundamentally addresses an exertion by
providers to create and execute supply chains that are pretty much as proficient and practical
as could be expected. Supply chains covers nearly everything from creation to item
improvement to the data frameworks expected to direct these endeavors.

6
SCM depends on the possibility that essentially every item that comes to advertise results from
the endeavors of different associations that make up a production network. Despite the fact
that supply chains have existed for a very long time, most organizations have as of late focused
on them as a worth add to their tasks.

The supply chain manager facilitates the coordination of all five parts of the of the supply chain:
• The plan or strategy
• The source (of raw materials or services)
• Manufacturing (focused on productivity and efficiency)
• Delivery and logistics
• The return system (for defective or unwanted products)

Relation between Operation Research Techniques and Supply Chain Management:

Supply chain management includes dealing with the creation interaction from crude materials
to the completed item. It controls each progression from creation, transporting, dispersion, to
conveyance of items.
The operations manager who is in charge of activity research procedures, deals with the supply
chain process by keeping up control of stock administration, the creation measure,
appropriation, deals, and sourcing of providers to supply required merchandise at sensible
costs. An appropriately overseen inventory network interaction will bring about a proficient
creation measure, low overhead expenses, and convenient conveyance of items to shoppers.

i. Stock administration:
Stock administration incorporates a deliberate way to deal with sourcing, selling and putting
away inventories which incorporates both line and completed merchandise. For any products-
based organizations, the estimation of stock couldn't possibly be more significant, which is the
reason stock administration benefits your operational effectiveness and life span. Inventories
are conveyed by associations with the assistance of activity research methods as follows:
a. Improve client support: A stock arrangement is intended to react to person client's
or association's solicitation for items and administrations.
b. Decrease costs: Inventory holding or conveying costs are the costs that are brought
about for storage of things.

7
 Be that as it may, holding stock things in the stockroom can in a roundabout way lessen
working costs like loss of altruism and additionally deficiency of possible deal because of lack of
things. It might likewise support economies of creation by permitting bigger, longer and more
creation runs. Support of operational ability: Inventories of crude materials and work in-
progress things go about as cradle between progressive creation organizes so personal time in
one phase doesn't influence the whole creation measure.
• Sporadic market interest: Inventories give insurance against unpredictable organic
market; an unforeseen change underway and conveyance timetable of an item or a help
can unfavorably influence working expenses and client assistance level.
• Amount markdown: Large size orders help to exploit value amount rebate. In any case,
such a benefit should keep a harmony between the capacity cost and expenses because
of out-of-date quality, harm, robbery, protection, and so on
• Maintaining a strategic distance from stockouts (deficiencies): Under circumstances like,
work strikes, catastrophic events, varieties sought after and delays in provisions, and so
forth, inventories go about as cradle against stock out just as loss of generosity.

ii. Production processes: Production Management is alluded to the use of the board
standards to the creation capacity of an association. At the end of the day, creation the
executives include use of preparation, arranging, coordinating and controlling the creation
cycle. Creation interaction or the board has driven us to three significant results. Initially,
the improvement of manufacturing plant arrangement of creation. Until the development
of the idea of assembling, there was nothing of the sort as the board as far as we might be
concerned. The facts confirm that individuals worked business of some sort, yet generally,
these individuals were proprietors of business and didn't see themselves as chiefs too.
Also, it came about the advancement of the huge enterprise with numerous proprietors
and the need to recruit individuals to work the business. Finally, it drove crafted by
numerous individuals of the pioneers of logical administration who had the option to
exhibit the worth, from a presentation and benefit perspective, of a portion of the
methods they were creating.
The use of activity exploration to the creation cycle prompted the accompanying:
a) Physical dispersion: Location and size of stockrooms, dissemination focuses and retail
outlets, conveyance approaches.
b) Facilities Planning: Number and area of manufacturing plants, distribution centers and so
forth Stacking and dumping offices.
c) Manufacturing: Production planning and sequencing adjustment of production, business,
cutbacks, and ideal item blend.

8
 d) Maintenance strategies, group size.
e) Project planning and designation of assets.

iii. Conveyance: Distribution intends to spread the item all through the commercial center
with the assistance of operational examination to such an extent that an enormous
number of individuals can get it. Appropriation includes doing the accompanying things:
a) A decent vehicle framework to bring the merchandise into various geological regions.
b) A decent global positioning framework with the goal that the perfect merchandise reach at
the perfect time in the correct amount.
c) A decent bundling, which takes the mileage of transport.
d) Tracking where the item can be put with the end goal that there is a greatest chance to get
it.
e) It additionally includes a framework to reclaim merchandise from the exchange.

iv. Deals: Operations research is a dynamic and wide-going arrangement of instruments that
permit examination, examination, streamlining, and reenactment of operational cycles.
With the utilization of OR in Sales the board we ought to be worried about:
a) Labor yield (i.e., what amount did we sell with our outreach group utilizing this
methodology?),
b) Sales preparing (i.e., Is technique An or strategy B of prospecting yielding more leads?), and
c) Sales projection (i.e., Given projected economic situations and our cycles, what is the scope
of potential deals results in the following time frame?). Operations Research subsequently
drives us to discover the correct inquiries to get the answer for our concern and make the
utilitarian region more compelling.

v. Sourcing: Sourcing, otherwise called acquisition, is the act of finding and choosing
organizations or people dependent on set models. Sourcing is completed in business in a
wide range of zones and for various reasons. Perhaps the most well-known employments
of sourcing are in store network the executives. Applying OR in acquisition or sourcing the
capacity turns out to be more practical in various manners. As a matter of first importance,
there are monetary advantages if bigger agreements can be haggled with providers for
merchandise or administrations utilized in an alternate organization area. Work costs will

9
 be less on the grounds that the whole operational sourcing work process will run smoother
and sourcing measures will not need to be begun once again and over again without any
preparation. The set of experiences will be available and shared inside the association for
convenience. There will be improvement in the detailing capacities since separate
information from the framework will be available, as it is imparted to the majority of the
colleagues and partners, and produce writes about an assortment of key execution
pointers identified with the whole obtainment measure for inside buying association.

Conclusion:
Supply chains play a critical role as the foundation for industry, but are now facing major
turning points. This report has described the effectiveness of support for rational planning and
operation of supply chains by optimization methods and simulations using OR techniques, and
in particular, the challenges which will require research and development efforts in the future.
It is additionally important to at the same time advance innovative work of further developed
OR strategies which are able to do displaying complex real factors, as demonstrated on the
right, and giving functional arrangements.

10
REFERENCE:
Operation Research: Definition, Scope and Techniques
Operations Research Models for Supply Chain Management and ...
Operations and Supply Chain Management Research ...

11