2.5.3 DSS in supply chain management
DSS are used in supply chain management for all levels of planning. The main type of activities supported by a DSS are:
- logistics network design
- supply chain planning
- vehicle routing and scheduling
Logistics network design is an extensive exercise using large quantities of data and complex decision parameters. Your text covers the basic concepts quite extensively.
The following reading is technical in nature but will introduce you to the decision elements for a strategic supply chain planning DSS.
Reading 2.10
Mentzer, JT & Gomes, R (1991) 'The strategic planning model: A PC-based dynamic, stochastic simulation DSS generator for managerial planning', Journal of Business Logistics , volume 12, number 2, pp.193-219.
The third chapter in this study guide is on logistics network design and is based on Chapter 2 in your text. This is dealt with in much greater depth in that chapter. See your text for a general description on the use of DSS for other planning activities.
Geographic Information Systems (GIS). One important technological development in the field of DSS has been the GIS or Geographic Information Systems. A GIS is an integrated computer mapping and database management system that provides functions for the storage, retrieval, management, analysis and display of geographic data. The GIS technology is widely used by governments and businesses for many purposes including census and demographic data analysis, market analysis, land use mapping etc.
In supply chain and logistics management, the GIS technology is used for network analysis, site location modelling, transportation modelling and distribution modelling. The integration of GIS in a DSS allows geographic data to be imported with an accurate street level data base for transportation and distribution related analysis. The GIS technology allows visualisation of data in a user friendly graphical form.