Wednesday, April 29, 2015

SUPPLY CHAIN RISK, PREDICTIVE ANALYTICS

Predictive analytics are often used in supply chain risk projects.  Daniel Kahneman (Nobel Prize winner) in "Thinking, Fast and Slow", seems to take the view that--in unpredictable environments, complex statistical algorithms often add little or no value over simple equally weighted formulas based on existing statistics or common sense.

Domain expertise is important for supply chain risk identification, validation, and assessment.