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Data Mining for Supply Chain Management in Complex Networks
Abstract
Supply chain comprises the flow of products, information, and money. In traditional supply chain management, business processes are disconnected from stock control and, as a result, inventory is the direct output of incomplete information. The focus of contemporary supply chain management is to organize, plan, and implement these flows. First, at the organizational level, products are manufactured, transported, and stored based on the customers’ needs. Second, planning and control of component production, storage, and transport are managed using central supply management and replenished through centralized procurement. Third, the implementation of the supply chain involves the entire cycle from the order-entry process to order fulfillment and delivery. Data mining can create a better match between supply and demand, reducing or sometimes even eliminating the stocks.
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