| COMPANY: | IBM Corp. |
| HEADQUARTERS: | Armonk, NY |
| SIZE OF COMPANY: | 1,000 or more employees; more than $1B in revenue |
| INDUSTRY: | Miscellaneous manufacturing |
| PRIMARY PRODUCT LINE: | Servers and systems, software, storage, OEM systems, Internet security, semiconductors, point-of-sale and self-service offerings |
| NAME OF PROJECT: | Non-traditional Demand Supply Integration - Economic Optimization MRP |
| PROJECT OBJECTIVE: | To increase reuse of non-traditional supply — used and new returns — and reduce new buy expense; reduce scrap, inventory carrying costs, write-offs, and waste landfill impact |
| TECHNOLOGIES EMPLOYED: | IBM WIT proprietary linear programming application, Economics Demand Supply Optimization process, MRP integrated with ERP |
| ACCOMPLISHMENTS/ROI: | Reduced new buy expense; improved balancing of excess lease returns to satisfy field service demand; reduced landfill. Initial development cost was roughly $300,000 with annual maintenance cost in support of business process changes of $30,000 per year; new buy expense mitigated $49.2 million in 2008 |