Supply chain design model purpose

We then proceed to discuss the possible extension to the model by considering different objectives for different agents, and/or some agent may adoptmultiple objectives simultaneously. For the purpose of illustration, we design the Pareto-optimal WP contract for the supply chain where the supplier adopts the satisficing objective and the retailer adopts the objective of expected profit maximization. 

A company with multiple supply chains, such as those tailored for multiple spheres, can use one model in one supply chain and a different model in another. This approach is justified by competitive strategies tailored to different product-market combinations, a purpose of process design for different spheres. 

Statistical models are mainly used for preselection purposes. However, they can be used for establishing the final supply chain configuration as well, if further refinement of results is not deemed possible or necessary. Availability of information is cmcial to applicability of statistical models. In Fig. 5.2, Statistical models are designated for situations with a large number of alternatives and a few fixed units. Knowledge-based and optimization models still should perform better in this... 

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