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As of February 1995 Digital Equipment Corporation stood as the third largest vertically integrated computer company in the world In the early 1990s Digitals annual revenues exceeded ten billion dollars serving eighty-two countries including the United States Given such a large customer base Digital uses the Global Supply Chain Model GSCM to determine manufacturing and distribution strategies and also to examine supply chain alternatives The GSCM program which has saved Digital over one hundred million dollars utilizes a mixed-integer linear methodology that integrates a global multi-product bill of materials for supply chains and a model of worldwide manufacturing and distribution decisionsCompanies that face very short product life cycles and extremely fast technological advancement find GSCM ideally suited to their supply and demand decision-making tasks and also find GSCM useful in rapid deployment analysis Some of the key features of the program include the implementation of weighted activity time Since Digital manufactures several products which each take different amounts of time to make and ship the use of a simple cycle time in the objective function would lead to inaccuracies because cycle time simply represents the longest time-path in an entire manufacturing process Weighted activity times refer to individual process times multiplied by the number of units passing through such a link in a given time This allows for more specific problem inputs and accurate manufacturing and supply schedulesGSCM minimizes a weighted combination of cost and activity periods Costs included within the model include production and inventory costs facility material handling costs fixed overhead taxes and transportation costs Due to implications of international business the model also includes a module for duty drawback and avoidance to help model trade agreements restrictions and international tax considerations GSCM directly accommodates duty considerations as part of the entire supply chain due to the large amount of money involved with high volume business across many national lines GSCM uses the module to minimize the costs of duties and find opportunities
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