Balancing Demand and Supply at NEC Computers International

In order to deal with volatility in demand and uncertainty in supply, NEC-Computers International (NEC-CI) instituted a demand and supply balancing process. The main objective of this process was to minimize losses due to mismatch in demand and supply. This required efficient management of new products introduction and phase-out of end-of-life products, quick decisions on how to dispose off obsolete parts and agreement on action plans to deal with supply shortages and excess material. The case describes how NEC-CI conducts this process and raises issues in managing this process.

Understanding the importance of matching demand and supply in fast clock speed industries and using an example of how one company has tackled this issue, making students understand the complexities and tradeoffs involved in managing this process.