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Recently Acme decided to re-orient the supply chain for its P60 network storage product , as follows: ACME decided to plan for all supply and

Recently Acme decided to re-orient the supply chain for its P60 network storage product, as follows:

ACME decided to plan for all supply and operations prior to Final Assembly to be based on forecasts and develop a stable schedule in order to try and reduce the upstream bullwhip effect. Everything downstream from Final Assembly would be driven by customer demand and built to customer contracts and orders. ACME is making this move with the objective of

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Reducing the overhead costs of ordering from the upstream suppliers

Maximizing their Final Assembly capacity utilization

Increasing their customer service levels without investing in additional safety stocks

Trading off increased supply costs against increased inventory costs

Maximizing their Accounts Receivables

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