Supply chain collaboration through shared capacity models

Collaboration between companies in a supply chain has been the subject of a great deal of discussion supported by a surprisingly small number of documented successful implementations. To help Intel to procure production materials, we applied multiple mathematical optimization models, each facilitated by shared capacity models developed in collaboration with material suppliers. One decision tool supports the weekly process of ordering materials. A second tool forecasts capacity rearrangements that suppliers need to consider over the next few quarters. Supplier capacity expansion spanning the next few years is the focus of a third tool. All parties have realized productivity and profitability gains using this set of integrated tools.