Validating with Simulators

Although APS systems use more sophisticated models of the supply chain than ERP systems do, the APS models are still subject to some important restrictions. The ability of APS to generate optimized solutions is due primarily to the use of linear programming and related mathematical techniques. As described in Chapter 5, linear programming requires that all the relations in the model be linear in form—the best-behaved “rogue” in Panel A of the rogues gallery of relations (see Figure 4.4). In the extension of linear programming known as mixed-integer programming, this assumption is relaxed to allow some relations to take on the stepwise pattern shown in Panel D of Figure 4.4, but the other kinds of relations aren't permitted. ...

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