A Constraint-Based Methodology for Effective Supply Chain Management

Abstract

This article provides a methodology along with guidelines for employing a ``constraint-based{''} approach for effective supply chain management. The article explores the shortcomings of using a traditional cost management approach in the managing of supply chains. In addition, the article introduces a supply chain management methodology based on achieving a global optimum for the entire chain. Examples are provided on how constraint-based techniques are currently being applied to the management of certain subsets of the supply chain. Guidelines are presented for managing supply chains using a constraint-based approach. Finally, the article ends with a discussion on the implications regarding the use of a constraint-based approach to the management of supply chains along with the need for future research in this area.