Subject category:
Production and Operations Management
Published by:
INSEAD
Length: 18 pages
Data source: Field research
Abstract
In order to deal with volatility in demand and uncertainty in supply, NEC-Computers International (NEC-CI) instituted a demand and supply balancing process. The main objective of this process was to minimise losses due to mismatch in demand and supply. This required efficient management of new products introduction and phase-out of end-of-life products, quick decisions on how to dispose of obsolete parts and agreement on action plans to deal with supply shortages and excess material. The case describes how NEC-CI conducts this process and raises issues in managing this process.
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Abstract
In order to deal with volatility in demand and uncertainty in supply, NEC-Computers International (NEC-CI) instituted a demand and supply balancing process. The main objective of this process was to minimise losses due to mismatch in demand and supply. This required efficient management of new products introduction and phase-out of end-of-life products, quick decisions on how to dispose of obsolete parts and agreement on action plans to deal with supply shortages and excess material. The case describes how NEC-CI conducts this process and raises issues in managing this process.