Close
ICRON will be a Silver Exhibitor at the upcoming Gartner Supply Chain Executive Conference 2019 on 17th-19th June 2019 in Barcelona, Spain. Click here to find out more.

Management Paper: Optimization vs. heuristics - Which is the right approach for your business?

 

There are many algorithmic techniques – such as constraint programming, mathematical programming, metaheuristics, local search, machine learning algorithms and evolutionary algorithms like genetic algorithms and simulated annealing – that are used to solve supply chain planning and scheduling problems. These algorithms can be classified into two main categories: heuristics and optimization.

The aim of optimization and heuristic solutions is the same – to provide the best possible solution to a given supply chain problem – but their outcomes are often dramatically different.

In this management paper, we will examine the differences between optimization and heuristics, and explore the pros and cons of each approach.