OPERATIONS RESEARCH IN SUPPLY CHAIN

FORD AND TOYOTA

GROUP INFORMATION

Name Prn Contribution

Kumar harsh 21021021427 Toyota content
Ayan kumar 21021021395 Making the ppt
Avanjala rai 21021021394 Toyota content
Chetanay Pasricha 21021021397 Learning outcome
Akshat chabbra 21021021376 Ford content
Manas gupta 21021021438 Ford content
ROLE OF OPERATIONS RESEARCH IN THE SUPPLY CHAIN
DOMAIN.

 A key component of supply chain management optimisation and improvement is operations research.
Its main objective is to enhance the supply chain's efficacy, efficiency, and decision-making by
applying quantitative and analytical techniques. By optimising production schedules, distribution
networks, transportation routes, inventory levels, and overall logistics, OR methods assist minimise
expenses, raise service standards, and increase profitability.
 Ford Motor Company optimises processes, lowers costs, and boosts efficiency in its supply chain
management by utilising a variety of Operations Research (OR) tools, methodologies, and software .
 OR TOOLS, TECHNIQUES AND SOFTWARE BEING USED BY
FORD COMPANY

 Ford Motor Company uses OR software and tools throughout their supply chain:
 Demand Forecasting: By taking into account past data and market patterns, Ford uses sophisticated statistical
models and machine learning to predict future demand with accuracy.
 Inventory Optimisation: By minimising shortages and excess parts across the supply chain, OR methods
guarantee ideal inventory levels.
 Logistics and Transportation: Ford uses OR technologies for scheduling, load optimisation, and route planning to
optimise transportation networks, cutting costs and speeding up delivery times.
 Supplier Management: To ensure an effective supply chain, optimisation models help choose dependable
suppliers based on location, price, and quality.
 Production Scheduling: In industrial facilities, OR helps to balance workloads, optimise production output, and
use resources.
 Software Utilisation: Ford uses cutting-edge software for supply chain modelling, analysis, and decision-making.
 Constant Improvement: Ford is able to adjust to changes in the market and in technology because to the regular
 OR TOOLS, TECHNIQUES AND SOFTWARE BEING USED BY
TOYOTA COMPANY
 Toyota's innovative supply chain management incorporates technologies from Operations Research (OR) in a number of ways:
 Just-In-Time Manufacturing (JIT): Toyota used OR approaches to optimise schedules and inventory levels, resulting in streamlined production that met demand
effectively and minimised inventory.
 Kanban Method: The OR-based Kanban system, which has its roots in Toyota, ensures efficient material movement and lowers waste.
 The Production System of Toyota (TPS): TPS optimises production operations by incorporating OR concepts for waste reduction and continual improvement.
 Principles of Lean Manufacturing: Process optimisation and value stream mapping are two OR technologies that help reduce waste and increase efficiency.
 Demand Planning and Forecasting: Toyota uses advanced OR techniques to optimise inventory, match production to demand, and create reliable forecasting
models.
 Modelling simulations: Toyota evaluates supply chain possibilities through simulation modelling, which helps them make well-informed decisions about
production and distribution.
 Optimisation of the Supply Chain: Supply chain design, manufacturing scheduling, and distribution are optimised using mathematical models taking into account
a variety of restrictions.
 Systems of Decision Support (DSS): Toyota's decision-making is supported by OR-powered DSS, which analyses data and evaluates options at various supply
chain levels.
 Big Data and Advanced Analytics: Toyota leverages big data and sophisticated analytics to extract insights for well-informed supply chain choices through the use
of OR methods.
 THE LEARNINGS OF THE PROJECT

Important lessons can be learned from the Toyota and Ford case studies on operations research (OR) in supply chain
management. lean Manufacturing and Just-In-Time (JIT): To effectively meet demand, concentrate on reducing waste
and using JIT.OR is responsible for planning and overseeing the Kanban system to ensure optimal material flow.
Comprehensive Management Philosophy: Integrating OR concepts with a comprehensive approach to supply chain
management is demonstrated by Toyota's Toyota Production System (TPS).Demand planning and forecasting: OR's
importance in creating precise forecasting models and maximising inventory levels Supply Chain Optimisation: The
supply chain is effectively configured via the use of mathematical programming and optimisation models Decision
Support Systems (DSS): Using OR algorithms in conjunction with DSS improves data-driven decision making.
Acquiring Knowledge from Ford's Approaches: Ford employs OR in a variety of ways for demand forecasting,
inventory optimisation, logistics, supplier management, and scheduling of production .
THANK YOU