Global supply chain management at Digital Equipment Corporation

Global supply chain management at Digital Equipment Corporation

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Article ID: iaor19951222
Country: United States
Volume: 25
Issue: 1
Start Page Number: 69
End Page Number: 93
Publication Date: Jan 1995
Journal: Interfaces
Authors: , , ,
Keywords: scheduling, programming: integer
Abstract:

Digital Equipment Corporation evaluates global supply chain alternatives and determines worldwide manufacturing and distribution strategy, using the Global Supply Chain Model (GSCM) which recommends a production, distribution, and vendor network. GSCM minimizes cost or weighted cumulative production and distribution times or both subject to meeting estimated demand and restrictions on local content, offset trade, and joint capacity for multiple products, echelons, and time periods. Cost factors include fixed and variable production charges, inventory charges, distribution expenses via multiple modes, taxes, duties, and duty drawback. GSCM is a large mixed-integer linear program that incorporates a global, multi-product bill of materials for supply chains with arbitrary echelon structure and a comprehensive model of integrated global manufacturing and distribution decisions. The supply chain restructuring has saved over $100 million (U.S.).

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