📘 Supply Chain Optimization Tool

📊 Executive Summary

📌 Before You Begin

Prerequisites

Before starting this training, ensure you have:

• Access credentials to the Supply Chain Optimization Tool
• Excel templates (INPUT and CONFIG files) - available from your administrator
• Basic Excel knowledge (entering data, navigating worksheets)
• Understanding of your supply chain (facilities, customers, products, costs)
• 30-60 minutes of uninterrupted time for initial training

Learning Path Recommendation

What You'll Learn

By the end of this training, you will be able to:

• ✓ Prepare and validate your supply chain data in Excel
• ✓ Upload data and configure optimization settings
• ✓ Run network optimization analyses
• ✓ Interpret results and make data-driven decisions
• ✓ Compare multiple scenarios to evaluate trade-offs
• ✓ Use advanced features for complex analyses
• ✓ Troubleshoot common issues independently

💡 Software Overview & Key Concepts

What is Supply Chain Network Design?

Supply chain network design is the process of determining the optimal configuration of your supply chain network - including which facilities to use, how products should flow through the network, and which transportation methods to employ - to minimize total costs while meeting all operational requirements.

How the Optimization Engine Works

Key Concepts Explained

Facilities

Locations in your network that can store, process, or ship products:

• Suppliers/Plants: Source of products (manufacturing facilities, suppliers)
• Distribution Centers (DCs): Intermediate storage and distribution points
• Customers: Final destinations where products are consumed

Lanes

Connections between facilities that allow product movement. Each lane has:

• Cost: Transportation cost per unit
• Capacity: Maximum volume that can flow
• Lead Time: Time required for transit

Constraints

Limitations that must be satisfied:

• Demand: All customer demand must be met
• Capacity: Facilities and lanes cannot exceed their maximum capacity
• Sourcing: Products can only come from facilities that can produce/supply them

Objective Function

The goal of optimization - typically Minimize Total Cost, which includes:

• Facility operating costs (fixed + variable)
• Transportation costs (lane costs × volume)
• Inventory holding costs (if applicable)

Why Use Mathematical Optimization?

📋 Data Preparation Best Practices

Data Quality Principles

Accurate optimization results depend on accurate input data. Follow these principles:

Data Collection Checklist

Common Data Preparation Mistakes

Data Validation Steps

Before uploading, validate your data:

1. Check for Completeness: All required columns filled
2. Verify Numeric Values: No text in numeric fields, no negative costs
3. Validate Relationships: Facilities referenced in lanes exist in Node Locations
4. Check Units: All costs and volumes in consistent units
5. Review Totals: Total demand doesn't exceed total capacity

Using Reference Mode vs. Actual Costs

🎯 How to Use This Guide (Visual Walkthrough)

This section provides a visual, step-by-step walkthrough of the Supply Chain Optimization Tool interface. Follow along with the screenshots to understand each feature and workflow.

2.1 Getting Started - Application Access

2.2 Data Upload Interface

2.3 Configuration Panel

2.4 Network Map Visualization

2.5 Results Dashboard

2.6 Detailed Results Tables

2.7 Scenario Comparison View

2.8 Export and Reporting

🚀 Quick Start Tutorial (15 Minutes)

What This Tool Does

Overview

This tool optimizes your supply chain network by analyzing all possible ways to move products from suppliers to customers, then selecting the most cost-effective routes and facility usage. You provide your network data (locations, costs, demand) in simple Excel templates, and the optimization engine mathematically calculates the best way to satisfy all customer demand while minimizing total costs.

The system considers facility operating costs, shipping expenses, capacity constraints, and routing options (like DC vs Local direct shipping) to find the optimal solution. Think of it as having an expert supply chain analyst run thousands of scenarios in seconds to find the absolute best configuration. The result: clear answers on which facilities to use, how much to ship on each lane, and exactly how much it will cost.

Flexible & Interactive

Beyond single-point optimization, the tool supports scenario comparison, Monte Carlo simulation for uncertainty analysis, and an interactive visual interface where you can workshop ideas by simply clicking on nodes or lanes to see detailed flows, costs, and utilization metrics. High-level summary statistics give you instant visibility into total network cost, service levels, and capacity usage, making it easy to explore trade-offs and gain actionable insights without running complex analyses yourself.

It answers questions like:

• Which facilities should supply which customers?
• How much should flow through each distribution center?
• Should we use DC method or Local direct shipping?
• What's the most cost-effective network configuration?
• Where are the cost savings opportunities in my network?

What You Need

📊 Understanding Your Excel Files

You have TWO main files:

File 1: INPUT Data (Changes Monthly)

Filename: current_baseline_input.xlsx

What it contains: Your operational data that changes regularly

File 2: CONFIG Rules (Set Once)

Filename: configuration_input.xlsx

What it contains: Business rules that rarely change

🎯 Step-by-Step: Your First Optimization

Complete Workflow Diagram

Hands-On Exercise: Your First Optimization

Step 1: Open the INPUT File (10 minutes)

Open: current_baseline_input.xlsx

1. Read the START HERE tab (2 minutes)

• Understand color coding
• See which columns are required

2. Fill Node Locations tab (3 minutes)

Example:
facility_name         | location_type | latitude  | longitude
─────────────────────────────────────────────────────────────
California Plant      | plant         | 34.0522   | -118.2437
Nevada DC             | DC            | 36.1699   | -115.1398
Customer Dallas       | customer      | 32.7767   | -96.7970
Supplier Chicago      | supplier      | 41.8781   | -87.6298

3. Fill demand tab (2 minutes)

Example:
customer_name    | product_name  | demand
───────────────────────────────────────────
Customer Dallas  | Widget A      | 5000
Customer Dallas  | Widget B      | 3000
Customer Miami   | Widget A      | 4000

4. Fill Facilities tab (3 minutes)

Example:
facility_name      | product_name | fixed_cost | variable_cost | max_capacity
────────────────────────────────────────────────────────────────────────────
California Plant   | Widget A     | 100000     | 5.00          | 50000
Nevada DC          | (blank)      | 50000      | 0.50          | 100000

Step 2: Use "Quick Start" Mode for Lane Costs (2 minutes)

1. Open Lane Cost tab
2. Fill just 3 columns:

   origin_name         | destination_name | cost_modeling_type
   ──────────────────────────────────────────────────────────────
   California Plant    | Nevada DC        | reference
   Nevada DC           | Customer Dallas  | reference
   California Plant    | Customer Dallas  | reference

3. That's it! System calculates costs based on distance automatically!

Optional: Fill sources and Lane Flow tabs later for advanced features

Step 3: Upload and Run Optimization (2 minutes)

1. Open the web application
   • Navigate to: http://localhost:5000 (or your URL)
2. Upload your INPUT file
   • Click "Upload Data"
   • Select current_baseline_input.xlsx
   • Wait for "Upload successful" message
3. Run Optimization
   • Click "Run Optimization"
   • Select "Minimize Cost" mode
   • Click "Start"
   • Wait 30-60 seconds
4. View Results!
   • See network map with flows
   • View cost breakdown
   • Export detailed results

Step 4: Understand Your Results (5 minutes)

What you'll see:

📊 Network Summary:
   Total Cost:        $1,250,000
   Shipping Cost:     $800,000
   Facility Cost:     $450,000
   
   Facilities Used:   3 of 5
   Total Flow:        50,000 units
   Service Level:     100%

Map View:

• Lines = Product flows
• Thickness = Volume
• Colors = Different products
• Hover = See flow details

Tables:

• Facility Results: Which facilities are used, capacity utilization
• Flow Results: Detailed flows between locations
• Cost Breakdown: Where money is spent

📊 Interpreting and Using Results

Understanding Your Optimization Results

After running an optimization, you'll receive comprehensive results that help you make informed decisions. This section explains how to interpret and use these results effectively.

Key Metrics to Review

Making Decisions from Results

Scenario Comparison Best Practices

When comparing multiple scenarios, focus on:

• Cost Differences: How much can you save?
• Facility Changes: Which facilities open/close?
• Flow Patterns: How do routing decisions change?
• Risk Factors: Which solution is more robust?

Presenting Results to Stakeholders

🚀 Advanced Features

Feature 1: Purchase Method Optimization

What it does: Chooses between DC method (via distribution center) and Local method (direct ship)

When to use: When you have multiple sourcing options with different costs

How to set up:

1. In sources tab, add purchase methods:

   facility_name    | product_name | primary_purchase_method | backup_purchase_method
   ─────────────────────────────────────────────────────────────────────────────────
   Supplier Chicago | Widget A     | DC                      | Local

2. In Lane Cost tab, add costs for both methods:

   origin           | destination      | cost_modeling_type | cost
   ───────────────────────────────────────────────────────────────
   Supplier Chicago | Nevada DC        | reference          | (auto)
   Nevada DC        | Customer Dallas  | reference          | (auto)
   Supplier Chicago | Customer Dallas  | reference          | (auto)

3. Optimizer automatically chooses cheapest method!

Feature 2: Tiered Pricing (Economies of Scale)

What it does: Models volume discounts - larger shipments get lower per-unit costs

When to use: When carriers offer volume discounts

How to set up:

1. In Lane Cost tab, add tier columns:

   origin    | destination | tier_number | tier_volume_range | tier_rate
   ─────────────────────────────────────────────────────────────────────
   Plant A   | Customer X  | 1           | 0-1000            | 10.00
   Plant A   | Customer X  | 2           | 1001-5000         | 9.00
   Plant A   | Customer X  | 3           | 5001+             | 8.00

2. Optimizer automatically uses cheapest tiers!

Feature 3: Multi-Period Planning

What it does: Optimizes across multiple time periods (monthly, quarterly)

When to use: For planning across time with seasonal demand or time-varying costs

How to set up:

1. Add time_period column to demand:

   customer_name | product_name | demand | time_period
   ───────────────────────────────────────────────────
   Customer A    | Widget A     | 5000   | Jan
   Customer A    | Widget A     | 6000   | Feb
   Customer A    | Widget A     | 4000   | Mar

2. Optional: Add time_period to costs for seasonal rates
3. Optimizer plans across all periods!

Feature 4: Level of Detail (LOD)

What it does: Control specificity of your data (generic or very detailed)

Flexibility levels:

Level 1 (Simple):

origin_name | destination_name | cost
──────────────────────────────────────
Plant A     | Customer X       | 10.00

→ Generic: Applies to all modes, carriers, products

Level 2 (Medium):

origin_name | destination_name | mode   | cost
───────────────────────────────────────────────
Plant A     | Customer X       | truck  | 10.00
Plant A     | Customer X       | rail   | 8.00

→ Mode-specific

Level 3 (Detailed):

origin_name | destination_name | mode  | carrier_name | product_name | cost
────────────────────────────────────────────────────────────────────────────
Plant A     | Customer X       | truck | FedEx        | Widget A     | 10.00
Plant A     | Customer X       | truck | UPS          | Widget A     | 9.50

→ Full detail: Different costs by carrier and product

Feature 5: Uncertainty Modeling

What it does: Models variability in demand, lead times, supplier reliability

When to use: For risk analysis and robust planning

How to set up:

1. In demand tab, add distribution columns:

   customer   | product  | demand_distribution_type | mean_or_mode | std_dev_or_min | max_value
   ───────────────────────────────────────────────────────────────────────────────────────────
   Customer A | Widget A | triangular               | 5000         | 4000           | 6000

2. Run Monte Carlo simulation:
   • System runs 100+ scenarios
   • Shows P5, P50, P95 results
   • Understand worst/average/best cases

📈 Case Studies & Real-World Examples

Case Study 1: Distribution Network Consolidation

Case Study 2: Purchase Method Optimization

Case Study 3: Seasonal Demand Planning

Lessons Learned from Real Implementations

⭐ Best Practices & Tips

Optimization Best Practices

1. Start with Reference Mode

2. Validate Your Data

3. Run Multiple Scenarios

4. Review Results Critically

5. Keep Data Current

Common Pitfalls to Avoid

Tips for Faster Results

• Use reference mode for initial analysis
• Start with smaller networks (subset of facilities) to test
• Save scenarios frequently to avoid re-running
• Use Excel templates to speed up data entry
• Document your assumptions for future reference

🔧 Troubleshooting

Error: "No feasible solution found"

Meaning: Optimizer can't satisfy all constraints

Common causes:

• ✓ Demand exceeds total capacity
• ✓ Missing lane connections
• ✓ Sources can't make required products

How to fix:

1. Check total demand vs total capacity
2. Ensure all customers can be reached from suppliers
3. Verify sources tab has product capabilities

Error: "Upload failed - invalid format"

Meaning: Excel file format issue

How to fix:

• ✓ Save as .xlsx format (not .xls or .csv)
• ✓ Don't rename column headers
• ✓ Keep required tabs (don't delete sheets)
• ✓ Fill required columns (see START HERE tab)

Result: Costs seem too high

Possible causes:

• Using "reference" mode (generic costs)
• Missing tier pricing
• Not using optimal purchase methods

How to improve:

1. Fill actual costs in Lane Cost tab
2. Add tier pricing for volume discounts
3. Enable purchase method optimization
4. Check for missing/expensive lanes

Map shows no flows

Possible causes:

• Optimization hasn't run yet
• Optimization failed
• Viewing wrong scenario

How to fix:

1. Click "Run Optimization"
2. Check console for error messages
3. Select "Scenario 1" in dropdown

❓ Frequently Asked Questions

Q: How long does optimization take?

A: Usually 30-60 seconds for typical networks (5-10 facilities, 20-30 customers)

Large networks (50+ facilities, 500+ customers) may take 5-10 minutes

Q: Can I optimize multiple products?

A: Yes! Add multiple products in:

• demand tab (customer demands by product)
• sources tab (which facilities make which products)
• Optimizer handles all products simultaneously

Q: What if I don't know exact costs?

A: Use "reference" mode!

• Set cost_modeling_type = reference in Lane Cost
• System calculates costs based on distance
• Good for initial analysis, refine later

Q: Can I model seasonality?

A: Yes! Use time_period columns:

• Add time_period to demand (seasonal demand)
• Add time_period to Lane Cost (seasonal rates)
• Add time_period to Facilities (seasonal capacity)

Q: How do I save my results?

A: Multiple options:

1. Export to Excel (click "Export Results")
2. Save scenario (click "Save Scenario")
3. Take screenshots of map and tables

Q: Can I compare multiple scenarios?

A: Yes!

1. Run first optimization → Save as "Scenario 1"
2. Modify data (add facility, change costs)
3. Run again → Save as "Scenario 2"
4. Compare scenarios side-by-side

Q: What's the difference between fixed and variable cost?

A:

• Fixed cost: Doesn't change with volume (facility rent, equipment)
  • Example: $100,000/month to operate DC (regardless of volume)
• Variable cost: Changes with volume (labor, materials)
  • Example: $0.50/unit for handling in DC (more units = more cost)

Q: Should I use DC method or Local method?

A: Let the optimizer decide!

• Set both as options in sources tab
• Optimizer compares total costs
• Chooses cheapest method automatically

Generally:

• DC method: Better for high volumes, consolidation
• Local method: Better for low volumes, fast delivery

Q: How accurate are the results?

A: Results are mathematically optimal given your inputs

Key factors:

• ✓ Accurate costs → Accurate results
• ✓ Accurate demand → Accurate results
• ✓ Complete data → Better optimization

📞 Getting Help

Need Support?

Contact: [Your contact info]

Include:

1. Description of issue
2. Screenshots if possible
3. Excel file (if data-related)
4. Error messages (if any)

Resources

📁 File Location:        /current_webapp_vue/input_files/
📊 Sample Data:          STANDARD_Template.xlsx
📘 This Guide:           /documentation/training/
🔧 Technical Docs:       /documentation/technical/

🎓 Training Checklist & Assessment

Training Completion Checklist

Complete these steps to master the tool:

• Read Executive Summary and understand tool benefits
• Review "How to Use This Guide" visual walkthrough
• Complete Quick Start section (15 minutes)
• Fill INPUT file (Node Locations, demand, Facilities)
• Run first optimization with "reference" mode
• View and understand results (map, tables, metrics)
• Try adding actual costs in Lane Cost tab
• Explore purchase method optimization
• Test tier pricing feature
• Save and export results
• Complete knowledge assessment below

Knowledge Assessment

Test your understanding with these questions:

📎 Appendix

A. Glossary of Terms

B. Quick Reference Card

C. Common Error Codes

D. Change Log

E. Additional Resources

• Video Tutorials: [Link to video library]
• Sample Data Files: /current_webapp_vue/input_files/
• Technical Documentation: /documentation/technical/
• User Community Forum: [Link to forum]
• Support Portal: [Link to support]

📝 Notes Section

Use this space for your own notes, tips, or reminders:

[Your notes here]