Santa Clara-based Intel is the largest semiconductor manufacturer in the world. Operations Research Engineers Toby Norwood and Brian Wieland describe how its capital-intensive manufacturing process dictates a high utilization supply chain with inventory pushed through the wafer fabrication process meeting demand pull on the customer side. Optimizing inventory is crucial, since short life-cycle high tech products reward outstanding safety stock target setting.
Logility multi-echelon supply chain inventory optimization allows Intel to attack inconsistent customer service levels and high scrap rates while holding service levels at desired constraints. Customer service levels can also be varied by product and market segment.
Logility allows Intel to accurately characterize forecasting error and better predict future demand uncertainty, leading to a more effective inventory strategy. Logility’s user friendly solution lets the Intel team run inventory optimization analyses on a weekly basis on hundreds of SKUs at once, across multiple supply chain tiers and distribution points.