| Article ID: | iaor200160 |
| Country: | United States |
| Volume: | 30 |
| Issue: | 1 |
| Start Page Number: | 7 |
| End Page Number: | 25 |
| Publication Date: | Jan 2000 |
| Journal: | Interfaces |
| Authors: | Yao David D., Ettl Markus, Lin Grace, Buckley Steve, Bagchi Sugato, Naccarato Bret L., Allan Rob, Kim Kerry, Koenig Lisa |
| Keywords: | production, computers |
In 1994, IBM began to reengineer its global supply chain. It wanted to achieve quick responsiveness to customers with minimal inventory. To support this effort, we developed an extended-enterprise supply-chain analysis tool, the Asset Management Tool (AMT). AMT integrates graphical process modeling, analytical performance optimization, simulation, activity-based costing, and enterprise database connectivity into a system that allows quantitative analysis of extended supply chains. IBM has used AMT to study such issues as inventory budgets, turnover objectives, customer-service targets, and new-product introductions. We have implemented it at a number of IBM business units and their channel partners. AMT benefits include over $750 million in material costs and price-protection expenses saved in 1998.