Global Supply Chain Management at Digital Equipment Corporation

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 (US).

Open PDF

Document Details

Document Type
Technical Report
Publication Date
Jan 01, 1995
Accession Number
ADA608573

Entities

People

  • Bruce C. Arntzen
  • Gerald G. Jerry Brown
  • Linda L. Trafton
  • Terry P. Harrison

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Advanced Electronics
  • Ground and Sea Platforms

DTIC Thesaurus Topics

  • Birds
  • Commerce
  • Computers
  • Corporations
  • Fabrication
  • Failure Mode And Effect Analysis
  • Geographic Regions
  • Industrial Plants
  • Linear Programming
  • Logistics
  • Manufacturing
  • Materials
  • Operations Research
  • Personal Computers
  • Production
  • Supply Chain
  • Supply Chain Management

Readers

  • Military Science
  • Operations Research
  • Statistical inference.