What we are seeing in this supply chain model and these simulations is the mental model you created and the intuitive understanding or “street smarts” you have acquired that enable you to comprehend and manage the business. This mental model enables you to run scenarios in your head and see how the different parts work together, the products, facilities, vehicles, and routes, and how changes to one affect all the others. (This article picks up where the previous one, Supply Chains of Rome — The Olive Oil Trade, left off.) Continue reading
You’ve worked in the family business for years and learned the olive oil trade. Your uncle just retired and now you run the show; it’s your time to show what you can do. And to be blunt about it, the family expects you to make money and grow the business – their livelihoods depend on it. Let’s take a look at the operations you manage. (This article picks up where the first article in the series, Supply Chains of the Roman Empire, left off.) Continue reading
Imagine it is the year 300 AD and you have just been promoted to run the family business. Your family is one of the wealthiest families in Roman Africa – the Septimi. The family owns extensive olive growing estates and is a major player in the olive oil export business. Are you up to the challenge of running this operation?
The Roman Empire got most of its wheat and a large portion of its olive oil from its provinces in North Africa. The province of Tripolitania (now part of Libya) produced an enormous amount of oil (olive oil), and huge fortunes were made growing olives and exporting the oil to Rome. Here is a picture of that supply chain.