Supply chain processes portfolio optimization

With product personalization, volume decreases and the predictability of supply declines. As a result, many companies are facing a new world of defining and managing supply processes for long tail supply chains. By definition, the further out the product portfolio is in the tail, the less efficient the supply chain process, ft is also less suitable for traditional linear optimization technlqnes found in the first generation of snpply chain planning technologies. 

Same as in level 4, but in addition, there is a portfolio optimization tool that support the execution of the entire process, manage exceptions and project timeline for SKU retirement across the supply chain (from customers to suppliers). 

Mathematical planning models can be employed to select and schedule processes and partners such that the overall supply chain is by design robust to internal and external stimuli. In particular, portfolio optimization models commonly applied in finance can be used to select a portfolio of suppliers such that the total supply chain cost variability and the consequences fi om supplier non-performance are within manageable limits, as demonstrated in the later sections of this paper. In addition, recent work in the area of robust optimization can also be used to generate supply chain solutions that maintain their optimality under minor deviations in environmental conditions. 

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