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Supply Chain Collaboration Through Shared Capacity Models

Author

Listed:
  • Shamin Shirodkar

    (CPU Platform Planning, Intel Corporation, No. 8-1 Kexin Road, Chengdu High-Tech Zone (West), Chengdu 611731, China)

  • Karl Kempf

    (Decision Technologies, Intel Corporation, 5000 West Chandler Boulevard MS-CH3-10, Chandler, Arizona 85226)

Abstract

Collaboration between companies in a supply chain has been the subject of a great deal of discussion supported by a surprisingly small number of documented successful implementations. To help Intel to procure production materials, we applied multiple mathematical optimization models, each facilitated by shared capacity models developed in collaboration with material suppliers. One decision tool supports the weekly process of ordering materials. A second tool forecasts capacity rearrangements that suppliers need to consider over the next few quarters. Supplier capacity expansion spanning the next few years is the focus of a third tool. All parties have realized productivity and profitability gains using this set of integrated tools.

Suggested Citation

  • Shamin Shirodkar & Karl Kempf, 2006. "Supply Chain Collaboration Through Shared Capacity Models," Interfaces, INFORMS, vol. 36(5), pages 420-432, October.
    • Handle: RePEc:inm:orinte:v:36:y:2006:i:5:p:420-432
    DOI: 10.1287/inte.1060.0235
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    References listed on IDEAS

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    1. Gérard P. Cachon & Martin A. Lariviere, 1999. "Capacity Allocation Using Past Sales: When to Turn-and-Earn," Management Science, INFORMS, vol. 45(5), pages 685-703, May.
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    Cited by:

    1. Pilar I. Vidal-Carreras & Jose P. Garcia-Sabater & Julio J. Garcia-Sabater, 2017. "A practical model for managing inventories with unknown costs and a budget constraint," International Journal of Production Research, Taylor & Francis Journals, vol. 55(1), pages 118-129, January.
    2. François Galasso & Caroline Thierry, 2008. "Cooperation Support In A Dyadic Supply Chain," Working Papers hal-00235808, HAL.
    3. Albrecht, Martin & Stadtler, Hartmut, 2015. "Coordinating decentralized linear programs by exchange of primal information," European Journal of Operational Research, Elsevier, vol. 247(3), pages 788-796.
    4. François Galasso & Caroline Thierry, 2008. "Design Of Cooperative Processes In A Customer-Supplier Relationship: An Approach Based On Simulation And Decision Theory," Working Papers hal-00332868, HAL.

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