Design logic defines the method used to select from a number of available options
• Optimization models consider a range of complex data to evaluate alternatives
– Aggregate customer demand
– Aggregate supply availability
– Product and information flows at each stage
– Transportation alternatives and costs
– Other variable costs
• Major problems with linear programming
– Need explicit functional relationships for full range of design options
– Only as valid as the design problem definition
– Often limited by number of stages in the supply chain and problem size