Hewlett-Packard combined OR and expert knowledge to design its supply chains

Although one can eliminate human bias from scenario definitions when modeling supply chain networks by using a pure operations research approach, the resources, data, and time needed for this approach may prohibit its use in fast-paced business environments. Hewlett-Packard's (HP's) strategic planning and modeling (SPaM) team refined an approach using true optimization coupled with scenario analysis, selectively focused on the most critical parameters of the design equation, and used this approach to solve a complex supply chain design problem for HP's imaging and printing group. The clear and easily demonstrable results helped management to understand their derivation and act confidently. The combined approach gave equal emphasis to optimization and to scenario analysis. © 2005 INFORMS.