WAREHOUSING STRATEGY AT INTELCORPORATIONJoshua Cork, Stuart Love and Jefferson Macias wrote this case under the supervision
WAREHOUSING STRATEGY AT INTELCORPORATIONJoshua Cork, Stuart Love and Jefferson Macias wrote this case under the supervision ofProfessorJames Kellso solely to provide material for class discussion at Arizona StateUniversity. The authors do not intend to illustrate either effective or ineffective handlingof a Supply Chain Management situation. The authors may have disguised certainnames and other information to protect confidentiality and intellectual property.Copyright © 2013, Intel CorporationINTRODUCTIONIt was Monday, September 23rd, 2013, and Jack Tyler, the Director ofWarehousing and Logistics at Intel Chandler, (which was alsointernally was known as J76) was reviewing the latest report providedby thefloor supervisor of Shift 3 Nikay Martin.In the report it hadbeen noted that demand for end product had been increasing by 15%over the normalized seasonal demand.This was a change from theprevious month, where overall demand had been equal to the priormonth.Furthermore, overall demand year over year had been down by10%.In this case, demand is driving both customer sales and alsofactory production from an inbound materials perspective.In thereport, the floor supervisor expressed concerns that he did not haveenough human resources to adjust to this recent increase in demand.Complicating the issue was that nine months prior, the warehouseconverted to a new order processing system that changed the wayorders were pulled, packed, labeled and shipped.However, customerrepresentatives have been alerting Mr. Tyler of a significant increase incustomer complaints due to incorrect content, or damaged andmisplaced labels, which had increased problems with customer’sinventory handling systems.This feedback was now reaching the toplevels of the corporation, as many of these customers were significantcontributors to Intel’s revenue and more importantly key partners instrategic initiatives in the market.Mr. Tyler felt that the recent introduction of a new product line waspotentially creating significant demand variability and needed to beassessed.He had already heard concerns from Samuel Amora, thecommodity Manager for J76 that the warehouse was unable to meet
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