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  • Essay / Cisco Case Study - 965

    One of the strategies was to outsource manufacturing. The company contracted with several manufacturing companies who then supplied the fully assembled products to Cisco. The second strategy was business growth through acquisition. Since the company went public, 11 years before the error, Cisco had experienced no growth and at times experienced meteoric growth. Cisco predicted that if growth continued at a similar rate, it would become a significant company in the U.S. economy. Another driving force was the rumor that, at the time of the error, certain Cisco components and products were considered to be in short supply. In an effort to accomplish all of this, Cisco has entered into extended contracts with various suppliers to facilitate its inventory build-up. The contracts could also reduce the time it takes to deliver goods to customers due to inventory build-up and availability, without necessarily waiting for manufacturers to supply so Cisco can sell to buyers. Role of Forecasting in Cisco Inventory