Effective frontier defined

Over the last 30 years, supply chains have become more complex with implications for cost, working capital, social responsibility, and product quality. These interactions involve thousands of trading partners in interconnected and ever-changing relationships that stretch around the globe. Excellence is defined through trade-offs on the effective frontier. 

In the beginning, supply chain excellence was defined as the lowest manufactured cost. The belief was that supply chain excellence could be achieved by sweating the assets. This set of beliefs formed the foundation for the efficient supply chain. Through the evolution of supply chain processes, costs were reduced, inventory levels lowered, and waste eliminated however, each company reached a point where they could no longer just cut costs without trading off service to customers. They had reached their effective frontier. 

Early pioneers fought hard battles with finance teams that did not understand the concepts. IT projects were implemented with overinflated commitments that were not grounded in reality. In the early days, the principles of supply chain trade-offs and the effective frontier were difficult to conceive. The singular focus on costs resulted in failures in customer service. These failures drove organizations to define supply chain excellence as a reliable supply chain to focus on closing multiple gaps ... 

Supply chain excellence is defined by the ability to use the supply chain to deliver the business strategy. The maturity of process allows companies to improve the potential of the supply chain to maximize opportunity and mitigate risks while raising the effective frontier. 

Improving the effective frontier. Making the right tradeoffs. How many supply chains does the organization have What defines supply chain excellence for each What is the effective frontier How can the company organize to make the right trade-offs What is needed to raise the potential of the company s effective frontier for their supply chain ... 

Fukui has explicitly examined this problem,45 stressing just the frontier electron population, which this time is defined to include orbitals just below the HOMO itself. The expression he uses (equation 3-2) defines a function (f) which is an estimate of the effective -electron population when both and ij/3 are... 

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