Managerial issues in locating a spare-parts hub for Digital Equipment Corporation.

Production & Inventory Management Journal, June, 2002 by Sundarraj, R.P.

As products mature they require significant service and spare parts. Companies that offer the products need to maintain the appropriate components and parts as well as service channels to ensure customer satisfaction. Maintaining the required inventory is one issue that needs to be addressed. Another critical strategic issue is the actual location of the facilities that will supply the services and parts necessary to ensure timely and cost-effective service support. These issues become more complex and compounded as the geographical and market penetration of the products increases (see Hill [3] for details). This was the situation Digital Equipment Corporation faced before its merger with Compaq Computers. Not only have computer and electronics products entered a...

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