Optimizing Monsanto's Supply Chain


A well integrated supply chain has become crucial for today's businesses to remain competitive. As a company striving to maintain its leading position in changing markets, Monsanto found that changing market supply conditions could foster new competitive advantages and threats. Monsanto's Crop Production business unit teamed up with MIT to better understand how current production, distribution and marketing practices should be adapted to take full advantage of new channel configurations. Researchers at MIT's Integrated Supply Chain Management consortium and supply chain managers at Monsanto used LINDO to analyze the impact of changes in their supply chain, production, distribution, and demand.

The LINDO optimization model resulting from the collaboration was used for strategic what-if analysis by analysts at Monsanto and students at MIT. The model helped Monsanto get a better understanding of the factors that make its integrated supply chain more effective. MIT benefitted in that the researchers were able to provide methodology to successfully answer some very difficult questions in a complex operation.

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