• About
  • Policies
  • What is open access
  • Library
  • Contact
Advanced search
      View Item 
      •   BUIR Home
      • Scholarly Publications
      • Faculty of Engineering
      • Department of Industrial Engineering
      • View Item
      •   BUIR Home
      • Scholarly Publications
      • Faculty of Engineering
      • Department of Industrial Engineering
      • View Item
      JavaScript is disabled for your browser. Some features of this site may not work without it.

      Applied Materials uses operations research to design its service and parts network

      Thumbnail
      View / Download
      655.6 Kb
      Author(s)
      Şen, A.
      Bhatia, D.
      Doǧan, K.
      Date
      2010
      Source Title
      Interfaces
      Print ISSN
      1359-0820
      Publisher
      Institute for Operations Research and the Management Sciences (INFORMS)
      Volume
      40
      Issue
      4
      Pages
      253 - 266
      Language
      English
      Type
      Article
      Item Usage Stats
      117
      views
      153
      downloads
      Abstract
      Applied Materials Inc. is the global leader in nanomanufacturing technology solutions. It has a broad portfolio of innovative equipment, service, and software products and supports its customers worldwide with an extensive service and parts network with more than 100 locations. At the end of 2006, Applied Materials decided to evaluate and rationalize the design of its North American network. It set up a detailed optimization model (including 50,000 parts) to develop a network and distribution strategy. To our knowledge, this is the first large-scale multiechelon network-design model that incorporates safety stock inventory costs while considering the effects of lead time and risk pooling. The company used the model's recommendations to reduce costs while maintaining or improving its service to customers. The recommendations included simplifying the distribution network by consolidating depot locations for specific customers and skipping an echelon for others, thus leading to a projected inventory reduction of $10 million. The company is currently implementing these recommendations and has already eliminated five depots. Applied Materials estimates that during the first year of implementation, inventory reductions of $5.24 million and total savings of $1.1 million can be attributed to these network changes.
      Keywords
      Facilities-equipment planning
      Industries
      Location
      Semiconductor
      Service
      Permalink
      http://hdl.handle.net/11693/22286
      Published Version (Please cite this version)
      http://dx.doi.org/10.1287/inte.1100.0493
      Collections
      • Department of Industrial Engineering 702
      Show full item record

      Browse

      All of BUIRCommunities & CollectionsTitlesAuthorsAdvisorsBy Issue DateKeywordsTypeDepartmentsThis CollectionTitlesAuthorsAdvisorsBy Issue DateKeywordsTypeDepartments

      My Account

      LoginRegister

      Statistics

      View Usage StatisticsView Google Analytics Statistics

      Bilkent University

      If you have trouble accessing this page and need to request an alternate format, contact the site administrator. Phone: (312) 290 1771
      © Bilkent University - Library IT

      Contact Us | Send Feedback | Off-Campus Access | Admin | Privacy