4. Stage Process 1 Problem perception 2 Problem identification 3 Problem formulation 4 Search for alternatives 5 Evaluation of alternatives 6 Choice of alternatives 7 Start of Operation 8 Implementation 9 Control

14. Traditional Model based on sales forecasts, a manufacturer orders parts for the PCs the parts are warehoused until they are needed by the manufacturer The manufacturer builds the PCs and stores them in the warehouse the units are ordered by the distributors and shipped to the latter’s warehouse Orders are then received from retailers and the PCs are shipped to them by the distributors Customers buy the PCs from the retailers and receive assistance in setting up the entire system. Direct-Sales Model the manufacturer orders a small number of parts from its suppliers business and individual customers place orders by phone or over the internet the manufacturer builds computers to customer’s exact specifications the manufacturer ships the computer directly to the customer Hybrid Model the computer manufacturer builds shells: a case, power supply, floppy disc, basic circuitry. the shells are shipped to the distributors, and component suppliers establish a parts inventory with, or near, that of the distributor the customer orders a computer through a retailer or directly from the manufacturer, and the order is forwarded to the distributor. the distributor gathers the parts to assemble the computer to the customer’s specifications on the dealer’s behalf, the distributor ships the computer directly to the customer. the dealer then provides setup and additional services for a separate fee

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