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Extended-Enterprise Supply-Chain Management at IBM Personal Systems Group and Other Divisions

Author

Listed:
  • Grace Lin

    (IBM T. J. Watson Research Center, Yorktown Heights, New York 10598)

  • Markus Ettl

    (IBM T. J. Watson Research Center, Yorktown Heights, New York 10598)

  • Steve Buckley

    (IBM T. J. Watson Research Center, Yorktown Heights, New York 10598)

  • Sugato Bagchi

    (IBM T. J. Watson Research Center, Yorktown Heights, New York 10598)

  • David D. Yao

    (Columbia University, New York, New York 10027)

  • Bret L. Naccarato

    (IBM Printing Systems Company, Endicott, New York 13760)

  • Rob Allan

    (IBM Personal Systems Group, Research Triangle Park, North Carolina 27709)

  • Kerry Kim

    (IBM Personal Systems Group, Research Triangle Park, North Carolina 27709)

  • Lisa Koenig

    (IBM Personal Systems Group, Research Triangle Park, North Carolina 27709)

Abstract

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.

Suggested Citation

  • Grace Lin & Markus Ettl & Steve Buckley & Sugato Bagchi & David D. Yao & Bret L. Naccarato & Rob Allan & Kerry Kim & Lisa Koenig, 2000. "Extended-Enterprise Supply-Chain Management at IBM Personal Systems Group and Other Divisions," Interfaces, INFORMS, vol. 30(1), pages 7-25, February.
    • Handle: RePEc:inm:orinte:v:30:y:2000:i:1:p:7-25
    DOI: 10.1287/inte.30.1.7.11616
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    References listed on IDEAS

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    1. Hau L. Lee & Corey Billington, 1993. "Material Management in Decentralized Supply Chains," Operations Research, INFORMS, vol. 41(5), pages 835-847, October.
    2. Stephen C. Graves & David B. Kletter & William B. Hetzel, 1998. "A Dynamic Model for Requirements Planning with Application to Supply Chain Optimization," Operations Research, INFORMS, vol. 46(3-supplem), pages 35-49, June.
    3. Bruce C. Arntzen & Gerald G. Brown & Terry P. Harrison & Linda L. Trafton, 1995. "Global Supply Chain Management at Digital Equipment Corporation," Interfaces, INFORMS, vol. 25(1), pages 69-93, February.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. S Eom & E Kim, 2006. "A survey of decision support system applications (1995–2001)," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(11), pages 1264-1278, November.
    2. Corey Billington & Gianpaolo Callioni & Barrett Crane & John D. Ruark & Julie Unruh Rapp & Trace White & Sean P. Willems, 2004. "Accelerating the Profitability of Hewlett-Packard's Supply Chains," Interfaces, INFORMS, vol. 34(1), pages 59-72, February.
    3. Kawase, Riki & Iryo, Takamasa, 2023. "Optimal stochastic inventory-distribution strategy for damaged multi-echelon humanitarian logistics network," European Journal of Operational Research, Elsevier, vol. 309(2), pages 616-633.
    4. de Kok, Ton & Grob, Christopher & Laumanns, Marco & Minner, Stefan & Rambau, Jörg & Schade, Konrad, 2018. "A typology and literature review on stochastic multi-echelon inventory models," European Journal of Operational Research, Elsevier, vol. 269(3), pages 955-983.
    5. Anindya Ghose & Tridas Mukhopadhyay & Uday Rajan, 2007. "The Impact of Internet Referral Services on a Supply Chain," Information Systems Research, INFORMS, vol. 18(3), pages 300-319, September.
    6. David Simchi-Levi & Yao Zhao, 2005. "Safety Stock Positioning in Supply Chains with Stochastic Lead Times," Manufacturing & Service Operations Management, INFORMS, vol. 7(4), pages 295-318, December.
    7. Daniel E. O'Leary, 2023. "Digitization, digitalization, and digital transformation in accounting, electronic commerce, and supply chains," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 30(2), pages 101-110, April.
    8. Pinar Keskinocak & Shidhar Tayur, 2001. "Quantitative Analysis for Internet-Enabled Supply Chains," Interfaces, INFORMS, vol. 31(2), pages 70-89, April.
    9. Amy David & David Farr & Ross Januszyk & Urmila Diwekar, 2015. "USG Uses Stochastic Optimization to Lower Distribution Costs," Interfaces, INFORMS, vol. 45(3), pages 216-227, June.
    10. Salal Humair & Sean P. Willems, 2006. "Optimizing Strategic Safety Stock Placement in Supply Chains with Clusters of Commonality," Operations Research, INFORMS, vol. 54(4), pages 725-742, August.
    11. Brian T. Denton & John Forrest & R. John Milne, 2006. "IBM Solves a Mixed-Integer Program to Optimize Its Semiconductor Supply Chain," Interfaces, INFORMS, vol. 36(5), pages 386-399, October.
    12. Melao, Nuno & Pidd, Michael, 2006. "Using component technology to develop a simulation library for business process modelling," European Journal of Operational Research, Elsevier, vol. 172(1), pages 163-178, July.
    13. Alfred Degbotse & Brian T. Denton & Kenneth Fordyce & R. John Milne & Robert Orzell & Chi-Tai Wang, 2013. "IBM Blends Heuristics and Optimization to Plan Its Semiconductor Supply Chain," Interfaces, INFORMS, vol. 43(2), pages 130-141, April.

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