The document discusses issues that Intel's Chandler warehouse J76 is facing with increased demand variability and customer complaints. Key issues include incorrect labels, damaged products, and late/wrong deliveries due to compatibility problems with the new warehouse management system IOE. The warehouse director Jack Tyler must develop solutions to address root causes and resolve issues for an upcoming executive meeting. Potential solutions discussed include reallocating warehouse space and capacity, but increasing labor would be difficult to justify given flat budgets. Tyler needs recommendations from his team on resolving issues to improve customer satisfaction and operations.

1. Complete the following exercises:
1. Assume b1 and b2 are declared Java boolean variables. Write
a Java expression for each of the following Boolean statements:
a. b1 and b2
b. either b1 or b2
c. b1 but not b2
d. not b1 but b2
e. either b1 or not b2
f. either not b1 or b2
g. neither b1 nor b2 (note this is not the same as 1f)
h. not b1 and not b2
i. either b1 or b2 but not both b1 and b2 (this is
called exclusive-or)
2. Assume the boolean variables b1 from b2 from question 1
have been assigned values: b1 = true and b2 = false. What is
the resulting (boolean) value of evaluating each of the
expressions from question 1?
Remember the order of operations of boolean operators: not is
evaluated before and, which is evaluated before or.

2. 3. In Boolean (Predicate) Logic, there are some additional
operators that are often used:
a. The implication (→) operator is defined as:
A
B
A → B
true
true
true
true
false
false
false
true
true
false
false
true
b. Implement the implication operator as a Java method
c. The equivalence (↔) operator is defined as:
A
B
A ↔ B
true
true
true
true
false
false
false
true
false
false
false
true

3. d. Implement the equivalence operator as a Java method
Extra exercise:
26. Complete the following truth table by finding the truth
values of the Boolean expressions for all combinations of the
Boolean inputs p, q, and r.
27. State whether the following is true or false. If false,
explain:
A && B is the same as B && A for any Boolean conditions A
and B.
28. The "advanced search" feature of many search engines
allows you to use Boolean operators for complex queries, such
as (cats OR dogs) AND NOT pets.
Contrast these search operators with the Boolean operators in
Java.
HELPFUL EXAMPLES:
------------------------------------------------
! (NOT)
A
! A
T
F
F

4. T
&& (AND)
A
B
A&&B
T
T
T
T
F
F
F
T
F
F
F
T
|| (MOLUSIVE OR)
A
B
A||B
T
T
T
T
F
T
F
T
T

5. F
F
F
A
B
dmnb (A,B)
T
T
F
T
F
T
F
T
T
T
F
F
(d || m) && ! (d&&m)
d
m
d || m
d && m
! (d && m)
(d || m) && ! ( d && m )
T
T
T
T
F
F

6. T
F
T
F
T
T
F
T
T
F
T
T
F
F
F
F
T
F
There is a case study for Intel Company. The case talk about
issues that the company have and they need to have possible
solutions which will not cost the company much loss.
I'm responsible to handle the (Labels Data / and Compatibility
issues) on this case.
Read the case very well and write about my section. Find what
are the issues and write a possible solutions that the company
can do to fix and end their issues. Advise them. Write 3 pages
on this case assignment.
If you need to search for more information on google that's fine
too.
Case is explained below…

7. WAREHOUSING STRATEGY AT INTEL CORPORATION
Stuart Love, Jeff Macias and Josh Cork wrote this case under
the supervision of Professor James Kellso solely to provide
material for class discussion at Arizona State University. Case
revisions have also been made by James Zamora and Alexander
Spicker. The authors do not intend to illustrate either effective
or ineffective handling of a Supply Chain Management
situation. The authors may have disguised certain names and
other information to protect confidentiality and intellectual
property.
Copyright © 2017, Intel Corporation
INTRODUCTION
It was Monday, September 22nd, 2014, and Jack Tyler, the
Director of Warehousing and Logistics at Intel Chandler, (which
was also internally known as J76) was reviewing the latest
report provided by the floor supervisor of Shift 3 Denise
Martin. In the report, it had been noted that demand for end
product had increased by 85% over the normalized seasonal
demand. This was a change from the previous month, where
overall demand had been equal to the prior month.
Furthermore, overall demand year over year had been down by
10%. In this case, demand is driving both customer sales and
also factory production from an inbound materials perspective.
Due to the report, the floor supervisor expressed concerns that
he did not have enough human resources to adjust to this recent
increase in demand. Nine months prior, the warehouse
converted to a new order processing system that changed the
way orders were pulled, packed, labeled and shipped, which
complicated the issue. However, customer representatives have
been alerting Mr. Tyler of a significant increase in customer
complaints due to incorrect content, or damaged boxes and
misplaced labels, which had increased problems with customer’s
inventory handling systems. This feedback was now reaching
the top levels of management, as many of these customers were
significant contributors to Intel’s revenue and more importantly
key partners in strategic initiatives in the market.

8. Mr. Tyler felt that the recent introduction of a new product line
was potentially creating significant demand variability and this
scenario needed to be assessed. He had already heard concerns
from David Goodwin, the commodity Manager for J76 that the
warehouse was unable to meet some customer requirements of
getting the correct product to customers on time with the correct
quality desired, and it was thought some system issues were the
root cause. There had been some system corrections, which
were implemented recently. However, he wasn’t sure if the
system was continuing to contribute to the most recent
complaints. Ms. Martin was not aware of this conversation. Mr.
Tyler had scheduled a meeting with Ms. Martin, Mr. Tyler and
the other members of the warehouse team Tuesday to work on a
plan to identify root cause and correct all of the issues. A
decision was critical to resolve these issues as J76 processed
orders all over the world and Mr. Tyler had to have a strategy
and execution plan in place for his report out to the Executive
Vice President of the Technology and Manufacturing Group on
November 25th.
Intel Warehouse J76
J76 is a global Intel warehouse located in Chandler Arizona and
is responsible for a range of key finished good products to
numerous customers. J76 customers concern themselves with
excess inventory and they want shipments delivered on time
(not late or early). This warehouse processes thousands of
orders per week. In general, J76 had historically expected
increases in year-over-year sales volume and normal
seasonality. The products in J76 range extended from low-
consumption, small-embedded devices to the most cutting-edge
mobile technology. J76 is one of many strategically located
warehouses within the Intel network.
While ensuring that customer fulfillment is met, there is tension
on the supply chain as any factory downtime is very expensive
and has been calculated at $1,000,000 per day if the factory is
shut down. Currently, raw materials consume 50% of the space
and finished goods consume 25% of the space at J76.

9. Maintenance Repair Operation (MRO) consumes 25%. A
further breakdown of the supply chain costs can be seen in
Appendix A.
J76 is a 160,000-square-foot facility that was 400 feet in length
and 400 feet in width with a 30-foot ceiling. The warehouse is
fixed in size, and Intel is not currently allocating capital
investments to increase capacity.
Warehouse Management System
The new warehousing system called IOE (Inbound and
Outbound Excellence) is an out-of-the-box ERP system, which
was implemented in 2013. The system manages the way orders
are pulled, and gives warehouse operators instructions on how
to box and pack. IOE also generates automated labels and gives
instructions where the finished goods are to be shipped. This
system connects directly with Intel’s ERP system SAP, which
manages customer ordering as well as financial and accounting
information. The system had a cost of $1.6 million to
implement and the project required two years to implement.
Ms. Martin herself received significant recognition for the
system implementation and was a strong advocate for the
system’s benefits. However, recent issues have been creating
customer dissatisfaction as indicated in the introduction.
Ms. Martin identified that printer drivers and hardware were not
compatible with IOE. There were also incorrect time zones
configured into the new system (PST as opposed to MST).
Another large problem was that often incorrect master data was
entered into the system – actual weights for the products were
causing incorrect data on the labels and documentation required
for customs, which caused delays, especially for international
customers. Appendix B shows the number of labeling issues for
various time periods of the process. Appendix C shows a list of
issues compiled by Ms. Martin from quality engineers. There
have been some additional discussions between Ms. Martin and
Mr. Goodwin, where Mr. Goodwin felt IOE was a real problem
in terms of causing customer issues, while Ms. Martin felt the

10. appropriate fixes had been put into place. This has caused some
interpersonal friction, and this friction has grown more as
demand for finished goods has become more variable.
Intel’s Value Chain
Intel’s Value Chain begins with the customer. Customer
excellence is a key component of Intel’s business model and
also a major factor in compensation, via bonuses. This can be a
significant portion of compensation for senior Intel employees,
and all employees receive bonus compensation to keep
alignment of goals. “We sell our products primarily to OEMs
(original equipment manufacturers) and ODMs (original design
manufacturers). ODMs provide design and/or manufacturing
services to branded and unbranded private-label resellers. In
addition, we sell our products to other manufacturers, including
makers of a wide range of industrial and communications
equipment. Our customers also include those who buy PC
components and our other products through distributor, reseller,
retail, and OEM channels throughout the world[footnoteRef:1].”
However, it is important to note that operational goals such as
balancing inbound and outbound costs are also included in these
bonuses. J76 needs to balance customer excellence and the
value it provides to Intel from an operational perspective. [1:
Intel 10-K 2-19-15]
Inbound Sourcing and Procurement
Activities in the J76 warehouse scope include receiving
materials, issuing parts to the factory, processing returns, and
cycle counting. This includes both Raw Materials and MRO
items (maintenance, repair, other) to support the local factory as
well as shipping finished goods to support customer orders.
Currently labor is split between receiving, issues/returns, and
shipping. Additionally, warehouse capacity is broken out by
material type (A breakdown of these supply chain costs can be
seen in Appendix A.). All of the above activities are critical to

11. factory uptime and cannot be overlooked (recall the
aforementioned cost of factory downtime). Mr. Goodwin has
also been monitoring the overall transit time to ensure
customers are receiving finished goods on their target date (See
Appendix C). Mr. Tyler and Mr. Goodwin have in the past
considered reallocating warehousing capacity and labor as a
potential solution to some of their issues, but have often been in
disagreement on whether space should be allocated. Mr. Tyler
felt that reallocation could help ensure customers were being
supported from demand upticks if the space was correctly
redesigned. However, Mr. Goodwin was adamant that raw
materials needed at least 50% of the warehouses capacity to
ensure the factory was properly staged to execute to its
schedules.
Intel
Intel Corporation is located in Santa Clara California with $55.9
billion in revenues[footnoteRef:2]. While resources vary across
the corporation, the current environment for J76 is that all
headcount is flat, which means Mr. Tyler must justify any
hiring increases directly with the Vice President. Attrition is
assumed to be 3.0% and backfill for those resources must also
be justified as business critical. Since the cost for the IOE
system was so high, and the fact that it took two years to
implement, it is unlikely that Mr. Tyler would receive
additional funding to replace the system. Mr. Tyler knew that
an easy solution would be adding human resources to meet
increasing demand. However, he felt that under the current
pressure to keep operating costs down, it would be a difficult
value proposition to justify the additional human resources to
solve the problems. [2: Intel 10-K 2-19-15]
The Decision
Later in the day Mr. Tyler got off the phone with a critical
customer who was not happy with the recent shipment quality
and threatened to switch to a competitor if the problems were
not resolved. As a starting point for the meeting on Tuesday,

12. Mr. Tyler needs his team to come up with a root cause of the
issues immediately. He needs his team to understand the
magnitude of the issue form a strategy and execution plan and
make recommendations for his meeting with the V.P.
Appendix: The data contained in this exercise is not the actual
data from Intel, but is randomly generated
Appendix A: Supply Chain Costs

13. Appendix B: Labeling Issues Over Time
Source: Intel MSU Case Study 2013
Appendix C: Transit Time for Finished Goods Products
Source: Intel MSU Case Study 2013
Appendix D: Other Issues Compiled by Intel
· Outdated printer drivers and hardware not compatible with
most of the new system
· Wrong time zones configured in the new system (PST, vs.
MST or GMT)
· Wrong master data for products in the system – incorrect
actual or dimensional weights for the products causing net
weight issues on the labels and documentation for customs,
causing delay at customs
· Inconsistent unit count on labels vs. advanced shipment
notification sent to the customer
· Missing advanced shipment notification for raw materials
coming into the dock – not knowing what to receive against

14. Appendix E: Intel J76 Warehouse & Factory
WarehouseUtilizationRaw Materials50% is5 DOIMROItems25%
is 10 DOIFinished Goods25% is 3
DOICurrentlaborallocationReceiving (RM& MRO)8
peopleIssue/ Returns8 peopleShipping8 peopleFactoryCostof
shutting factory down$1,000,000/dayCustomer
ServiceImpactShipment damaged$1000 eachWrong product in
the box$500 eachDelivered to wrong address$500 eachCustomer
Service ImpactIncorrect Labeling (missing,incorrect)$1000 each