Delco Electronics Case

A study ([9]) described General Motors (GM) as carrying over 7.4 billion in inventory and incurring 4.1 billion in freight costs in 1984. The questions the study explores are the following How could this total supply chain cost be decreased Could the approach be used by decision makers throughout the GM system to impact supply chain costs and thus improve performance  

In 1984, Delco Electronics, which was a division of GM, faced a problem. Three component plants, in Matamoros, Mexico, Milwaukee, WI, and Kokomo, IN, supplied radios, heater controls, electronic modules 

Each of these flows is impacted differently by business conditions, thus changing the ideal choice over time. The role of the analysis was to both identify and quantify the impact of each of these choices. 

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