Many companies are faced with complex
decisions as to how to best manage their production facilities and the
associated logistical environment. Such an environment can be very
dynamic; markets change, material supplies change, costs change,
production capabilities change, and trade agreements change. In such a
dynamic environment, one cannot rely on traditional operating practices
and policies to guarantee maximum financial performance.
One of the roles of management in a corporation is to
maximize return to the shareholders. "Return" in this context
refers to economic value added to the capital invested by the
shareholders. Economic value (profit) is maximized when the resources in a
company are employed in an optimum manner. Resources in this context are
defined broadly and include such items as material resources, labor,
financial capital, machinery, markets and time.
The conventional approach to evaluating the use of
resources is to apply various cost and revenue calculations to determine
the "best" operating pattern. However, such calculations often
are limited in scope and do not address the complex financial and
process-related interactions of the manufacturing and logistics
environment. Without the proper decision-making tools managers can be
reluctant to make necessary changes in the business.
Optware taps the tremendous optimization power of
linear programming and presents it in an easy to use flexible format. Optware
can be thought of as a "virtual" business model complete with
process flows and associated costs and revenues. Optware encourages
managers to explore new business practices because such ideas can be
tested in the Optware "laboratory" to ensure viability
before implementation.
Linear
programme |