Optimizing Inventory Levels Within Intel's Channel Supply Demand Operations

Brian Wieland (), Pat Mastrantonio (), Sean P. Willems () and Karl G. Kempf ()
Additional contact information
Brian Wieland: Channel Supply Demand Operations, Intel Corporation, Folsom, California 95630
Pat Mastrantonio: Channel Supply Demand Operations, Intel Corporation, Folsom, California 95630
Sean P. Willems: School of Management, Boston University, Boston, Massachusetts 02215
Karl G. Kempf: Intel Corporation, Chandler, Arizona 85226

Interfaces, 2012, vol. 42, issue 6, 517-527

Abstract: Intel's Channel Supply Demand Operations (CSDO) organization is responsible for satisfying the boxed processor demands of Intel's vast customer network of distributors, resellers, dealers, and system integrators. In 2005, CSDO began a multiechelon inventory optimization (MEIO) project to improve its efficiency and effectiveness by optimizing inventory levels and locations across CSDO's end-to-end supply chain. This paper describes the project plan, workflows, and results. One year after implementation, total inventory levels were reduced by more than 11 percent; in addition, service levels of products modeled using the MEIO process were eight points higher than products not modeled using this process. The MEIO process continues to be in place at Intel and has resulted in sustained reductions in inventory levels, average service levels exceeding 90 percent, and more than an order-of-magnitude reduction in the number of expedites.

Keywords: multiechelon inventory optimization; supply chain application (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://dx.doi.org/10.1287/inte.1120.0637 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:orinte:v:42:y:2012:i:6:p:517-527

Access Statistics for this article

More articles in Interfaces from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().