The importance of business modeling in the supply chain has
helped hugely in terms of minimizing cost and maximizing profit. Modeling the business requires both
qualitative and quantitative analysis of raw data to analyze the business
situation or the model itself. One
important part before analyzing the data is identifying the problem of the
given business model. Once the problem
is defined correctly alternatives can be demarcated with the specific
criteria. Likewise, alternatives needs
to be evaluated carefully to achieve and come up to the ultimate alternative choice
that can be the solution to the problem.
BUSINESS PROBLEM SOLVING PROCESS:
1. Define the Problem
2. Identify the Alternatives
3. Determine the Criteria
4. Evaluate the Alternatives
5. Choose an Alternative
6. Implement the Decision
7. Evaluate the Results
MODEL DEVELOPMENT:
To develop a model usually comes from an engineering
imaginative point of view were by models are made only just for a given
business framework. Models are a representation of real objects or situations
and can be presented in various forms.
To some engineering and logistical term it is called the iconic models
or analog model. Thus, these analog and
iconic models can be translated into a mathematical model for further study and
analysis of the problem or the problem solving process stated above.
Given, if you are running a micro or macro business, does
your “business models” relevant to the actual business problems or just transient
conceptual ideas that will need remodeling in the later.
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