In 2003, the ITC said at a high level of stocks, through the transfer of risk from the finished products and raw materials to production. It is necessary that the supply chain will be much more flexible and responsive than it was in the past. By 2006, changes in the supply chain, which included the relocation of production to the house to improve flexibility and efficiency. Obsolete inventory was significantly reduced, and the company was much better in the match of supply and demand. The cost, however, is still higher than in the third party. The company had to decide on the appropriate trade-off between cost and efficiency in structuring its supply chain. "Hide
by Sunil Chopra Source: Kellogg School Management 16 pages. Publication Date: January 1, 2007. Prod. #: KEL362-PDF-ENG
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