Analytics Makes Inventory Planning A Lights-Out Activity at Intel Corporation
Intel, which employs more than 100,000 people in over 70 countries around the world and has an annual revenue of $60 billion, implemented a fully automated Multi-Echelon Inventory Optimization (MEIO) based inventory target-setting system managing $1 billion daily in finished goods inventory representing over $40B a year in sales. Algorithm-derived inventory targets at Intel are accepted by planners +99.5 percent of the time and have simultaneously driven higher customer service and lower inventory levels resulting in over $1.3B in gross profit since 2014. In addition, customers are delighted: since MEIO was implemented at all of Intel’s vendor managed inventory hubs in 2012, customer satisfaction has never been higher and Intel has landed in the top-10 of Gartner’s Supply Chain Top-25 every year. Faculty in the department of Business Analytics and Statistics at the University of Tennessee, Knoxville and the supply chain software company Logility also contributed to this project.
Intel is competing as a 2018 Edelman Finalist, to see other finalists, click here.
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