Applied Mathematics in Supply Chain!


Subscribe Here!

Amongst other things a supply chain manager is responsible for ensuring that goods are delivered to the correct destination in a timely manner. This can be a challenging task, as there are many potential problems that can occur along the way.

 In this blog post, we will discuss some of the most common mathematics problems that can impact a supply chain. We will also provide tips on how to solve these problems in the next blog post. Let’s get started!


One of the most common mathematics problems faced by supply chain managers is forecasting. This involves predicting future demand for products and services. Accurate forecasting is essential for ensuring that the correct level of inventory is maintained. There are a number of methods that can be used for forecasting, including trend analysis and regression analysis. 

Trend analysis is used to identify patterns in historical data. This information can be used to predict future demand. For example, if sales of a product have been increasing over the past few months, it is likely that this trend will continue.

Regression analysis is a more complex method that can be used to identify relationships between different variables. This information can be used to predict future demand. For example, if the price of a product increases, it is likely that demand will also increase.


Another common problem is optimization. This involves finding the best way to allocate resources in order to meet objectives. For example, a supply chain manager may need to optimize routes in order to minimize costs.

This can be a difficult task, as there are often many constraints that need to be considered. Linear programming is one method that can be used for optimization problems. An example of linear programming is given below.

In this example, the objective is to minimize costs. The constraints are that the supply must be at least 50 and the demand must be at least 100. The optimal solution is to allocate 60 units of supply to route A and 40 units of supply to route B. 

Supply Chain Quality Management

Supply chain quality management is another area where mathematical problems can occur. This involves ensuring that products meet the required standards. Quality control charts are one tool that can be used to monitor quality. Statistical sampling can also be used to test products. These methods can help to identify potential problems so that they can be rectified before products are sent to customers.

See also  4 Steps to Secure the Healthcare Data Supply Chain!

If you’re not sure you can handle the workload or have trouble with math, you can get discrete math help from online supply chain management help services. Doing your research and being prepared can help you avoid any stressful surprises down the road. Plus, it can help you stay on top of your work.

With the right tools in your toolkit, you can overcome any mathematical challenges that come your way. Being prepared is winning half the battle, as they say.

Supply Chain Contracts

Another area where mathematics can be used is in the negotiation of supply chain contracts. This involves estimating the amount of products that will be required and determining the best price for these products. It is also important to take into account potential delays and other risks that may occur. Mathematical models can help to make this process easier and more efficient.

An example of a mathematical model that could be used in supply chain contracts would be the Newsvendor model. This model can be used to estimate the amount of a product that should be ordered. It takes into account the demand for the product, the cost of the product, and the storage costs. 

The Newsvendor model can be used to negotiate contracts with suppliers. It can also be used to determine the optimal level of inventory to maintain.

Inventory Management 

Inventory management is another common task for supply chain managers. This involves ensuring that there is enough inventory on hand to meet demand. It is also important to avoid stockouts, as this can lead to lost sales. There are a number of methods that can be used for inventory management, including Kanban systems.

Kanban system is a method of inventory management that uses cards to signal when more inventory is needed. This system can be used to manage both physical and virtual inventories. Mathematics is used with Kanban system to calculate the amount of inventory that should be ordered.

Another method that can be used for inventory management is the Economic Order Quantity (EOQ) model. This model determines the optimal order quantity that should be ordered to minimize costs. It takes into account the cost of ordering and the cost of holding inventory.

See also  Factors to Consider Before Redesigning Your Website!

Logistics Management

Logistics management is the final area we will discuss. This involves the coordination of transportation, warehousing, and other activities. It is important to optimize these activities in order to minimize costs. Mathematical methods can be used for this purpose as well. For example, decision trees can be used to choose the best mode of transportation. 

Decision trees is a type of mathematical algorithm that can be used to make decisions within the company. It involves making a series of decisions, each of which has a number of possible outcomes. Using decision trees can help a supply chain manager make sure they made the right call.

As you can see, there are a number of mathematical problems that can be encountered by a supply chain manager. However, these problems can be overcome with the use of various methods and tools. By understanding these methods and tools, you can ensure that your supply chain runs smoothly and efficiently.

Wrapping Up

We hope that this blog post has provided you with an overview of some of the most common mathematics problems faced by supply chain managers. Stay tuned for our next blog post, which will discuss how to solve these problems.

If you are facing problems with these or other mathematics problems, we would be happy to help you out with anything you need. Plus, we’d appreciate your comments below! Let us know what math problems you struggled with the most during your work.

Author Bio:

Alisia Stren is a world traveler and book writer. She also works for a content writing agency, writing on topics such as health, math, and logistics. In her free time, Alisia likes to hike. She’s climbed Mount Kilimanjaro twice.

Mathematics article and permission to publish here provided by Alisia Stern. Originally written for Supply Chain Game Changer and published on March 16, 2022.
%d bloggers like this: