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In the make-to-order personal computer business,
effective supply chain management is critical. Part shortages can
generate high expediting costs, and late shipments make for unhappy
customers. Overages cause high inventory costs and even scrap loss.
And the customers demand for fast delivery in some
cases, five days or less leaves little room for error.
Unfortunately, the supply chain manager is not well-armed. She
spends her days gathering forecast, order, inventory, and supply
data from multiple sources. Then she puts it all together to create
a view of projected supply chain performance, usually in a spreadsheet.
She keeps a spreadsheet for each of the 50 parts that she manages,
and she has to update each one every day. By the time she finds
a problem, its often too late for her to accomplish her real
goal: to find a shortage, and fix it, before it happens.
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