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To: TigerPaw who wrote (161030)9/23/2000 12:40:21 PM
From: rudedog  Read Replies (1) | Respond to of 176387
 
TP - no, this was something different. Because of processor shortages, vendors were ordering through multiple suppliers. As supplies started to come through, they cancelled the redundant orders. In the case of Europe, they even cancelled the primary orders in some cases. As a result, Intel had an unrealistic forecast as they showed both the primary and redundant orders as demand.



To: TigerPaw who wrote (161030)9/23/2000 12:44:42 PM
From: IceShark  Respond to of 176387
 
No, channel stuffing is when the manufacturer pushes the completed product into the distribution channel at greater levels than end demand justifies.

What is thought to have happened in intc's case is that OEM boxmakers double and triple ordered intc processors to help ensure that they had enough to meet their own needs. This was due to the fact that intc was having production problems and was putting people on allocation on some product.

Then when boxmakers finally see how things are shaking out they go and cancel the duplicate orders and there goes intc's backlog.