Global Supply Chain Management at Digital Equipment Corporation

Digital Equipme nt Corporation eva luates globa l supply chain alternatives and determines worldwide manufacturing and distribution strategy , using the Global Supply Cha in Model (GSCM) which recommends a production, distribution , and vendor network, GSCM minimizes cost or weighted cumulative production and distribution times or both sub ject to meeting estimated demand and restrictions on local content, offset trade, and joint capacity for multiple products, eche lons, and time periods. Cos t factors include fi xed and variable production cha rges, inventory charges, distribution expenses via multiple mod es, 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 eche lon structure and a comprehensive model of integrated globa l manufacturing and distribution decisions. The supply chain restructuring has saved over $100 million (US ),