IES - Insight Enterprise Strategy - Dybvig Consulting

HOW TO IMPROVE NORMATIVE MODELS

  • By observing both of internationally recognized supply chain expert, Paul Bender’s “Natural Laws and Permanent Principles”
  • In any system, the sum of the partial optimum benefits is less than the system optimum benefit.”
  • The “The more tradeoffs optimized, simultaneously, the more benefits obtained.”

Since, ALWAYS:

1. Descriptive models < normative models

2. Sum of normative models < Normative model of sum

3. Normative model with fewer decision variables < normative model with more decision variables


See One Model