The results of an effort to build a sense-and-respond solution for a supply chain by using a model-driven development framework are described in this paper. One of the components of the framework is the IBM Research-developed model-driven business-transformation (MDBT) toolkit, a set of formal models, methods, and tools. The inventory optimization analytics used to improve supply chain performance are also described. This approach is illustrated through a case study involving the IBM System xe supply chain.