Methodology aiming to ensure the optimal operation of a supply chain
Supply-chain optimization (SCO) aims to ensure the optimal operation of a manufacturing and distribution supply chain.[1] This includes the optimal placement of inventory within the supply chain, minimizing operating costs including manufacturing costs, transportation costs, and distribution costs. Optimization often involves the application of mathematical modelling techniques using computer software. It is often considered to be part of supply chain engineering, although the latter is mainly focused on mathematical modelling approaches, whereas supply chain optimization can also be undertaken using qualitative, management based approaches.[2]