Use of Model-driven Decision Support Methods for Supply Chain Design

Decision makers frequently consider the use of quantitative models for decision support when they face supply chain related decisions such as localization, make-or-buy, or production and distribution strategy. However, they often do not have the background required to understand, evaluate and select models. This paper briefly outlines when to use such model-driven methods and then suggests a framework that can be used by decision makers when specifying model requirements and evaluating models proposed by modeling experts. There is a need for such a framework in order to improve communication between decision makers and modeling experts, the two groups normally having quite different backgrounds. In order to exemplify the use of mathematical models in supply chain related decisions and to apply the framework as a means of describing the models used, several cases are presented.