Global Supply Chain Management at Digital Equipment Corporation
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Authors
Arntzen, Bruce C.
Brown, Gerald G.
Harrison, Terry P.
Trafton, Linda L.
Subjects
Advisors
Date of Issue
1995
Date
January - February 1995
Publisher
Language
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, multiproduct bill of materials for supply chains with arbitrary echelon structure and comprehensive model of integrated global manufacturing and distribution decisions. The supply chain restructuring has saved over $100 million (US).
Type
Article
Description
Interfaces, 25, pp. 69-93. (Nominated for the 1994 International Management Science Achievement Award.)
Series/Report No
Department
Operations Research (OR)
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Citation
Arntzen, B., Brown, G.G., Harrison, T., and Trafton, L., 1995, “Global Supply Chain Management at Digital Equipment Corporation,”Interfaces, 25, pp. 69-93. (Nominated for the 1994 International Management Science Achievement Award.)
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defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.