The Supply Chain Approach to Planning and Procurement Management
نویسنده
چکیده
This paper describes the processes and equations behind a reengineering effort begun in 1995 in the planning and procurement organizations of the Hewlett-Packard Colorado Springs Division. The project was known as the supply chain project. Its objectives were to provide the planning and procurement organizations with a methodology for setting the best possible plans, procuring the appropriate amount of material to support those plans, and making up-front business decisions on the costs of inventory versus supplier response time (SRT),* service level to SRT objectives, future demand uncertainty, part lead times, and part delivery uncertainty. The statistical modeling assumptions, equations, and equation derivations are documented here.
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