Bottom-Up Vs. Top-Down Approaches to Supply Chain Modeling

The term “supply chain management” crystallizes concepts about integrated planning proposed by operations research practitioners, logistics experts, and strategists over the past 40 years (e.g., Hanssman (1959), LaLonde et al (1970), Porter (1985)). Integrated planning refers to functional coordination within the firm, between the firm and its suppliers, and between the firm and its customers. It also refers to intertemporal coordination of supply chain decisions as they relate to the firm’s operational, tactical and strategic plans.

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