Designing intelligent service supply networks

Intelligent networks are emerging as a class of supply systems that permit extreme customization and serve-to-order (i.e., minimal inventory) responsiveness by co-integrating product design, process redesign, and networkwide control mechanisms (Rai, Bush et al., 2002; Rai and Sambamurthy, 2002). The airlines in-flight services involve a globally dispersed partnership of suppliers, manufacturers, distributors, caterers, and airlines where tens of thousands of SKUs, including many perishable units, flow through the logistics systems. In fact, a long haul 747 flight requires over 40,000 SKUs.