Dell Inc: Improving The Flexibility Of The Desktop Pc Supply Chain Liberty University Busi740 Case Study

1584 words - 7 pages

1
Running head: DELL INC.
2
DELL INC.
Dell Inc: Improving the Flexibility of the Desktop PC Supply Chain
Case Study
Strategic Supply Chain Management
Liberty University
BUSI 740 – B02
January 20, 2019
Case Study 1
Dell Inc.
Dell Inc. was founded by Michael Dell in 1984 based on the business model of eliminating retailers from the sales channel and selling directly to customers. This business model carried the company into the ranks of the top-five computer system maker worldwide by 1993 and number one in 2001. The company product offering includes personal computers and a variety of consumer electronics such as servers, storage, monitors LCD TVs, and projectors to name a few (Simchi-Levi, Kaminsky, & Simchi-Levi, 2008, p. 179).
The business model of selling directly to customers has been used throughout the history of the company. It is considered as Dell’s key strategy and strength. The model has no retailers and starts and end with the customer orders online or phone a computer system. Its manufacturing cost is lower than competitors due to it ship directly to customers and it only build to order. There is a reduction in time from customer orders to receipt in the system and provides a single point of accountability to provide resources to satisfy its customers (Simchi-Levi et al., 2008 p. 180).
Why does L5 incur higher manufacturing and logistics costs than L6? What are some of the costs that are incurred in L5 but not in L6? Are there any costs that apply to only L6 but not L5?
The degree of assembly is broken down into 10 levels. The higher the level, the more fully integrated it its. A L5 manufacturing and logistic process is the assembly of the desktop PC chassis, floppy disk drive, fan and a power supply depending on the chassis configuration. In addition to having the same components as L5, L6 has a motherboard installed into the chassis. L5 overall manufacturing and logistics cost is higher than L6 due to an increase in the utilization of L5 manufacturing since March 2005 (Simchi-Levi et al., 2008).
The root cause of the rise in L5 manufacturing is due to Dell’s failure to provide contract manufacturers the motherboards in a timely manner. The factors that contribute to these deficiencies are the chipset supplier decommit or supply issues, quality and engineering issues, forecast accuracy, and new product introduction (NPI). Although NPI only makes up 3.8 percent of the root cause, it is considered volatile where the forecast uncertainty can create the need for air-freight extra motherboards not normally required in the L6 manufacturing (Simchi-Levi et al., 2008 pp. 180). Bakker, Zheng, Knight, and Harland (2008) stated, “When operating in a volatile market ‘agility’ is required and information technology is focused on exchange of demand information” (p. 317, para. 2).
The costs that are incurred by L5 that does not occur in L6 are the Motherboard air-freighting and 3rd Party Integration cost. These costs are driven by the complexity of...

Other Essays On Dell Inc: Improving the Flexibility of the Desktop PC Supply Chain - Liberty University BUSI740 - Case Study

Compare the U.S. Constitution, Declaration Of Independence, and Thomas Jefferson Letters - Liberty University/ GOVT200 - Comparison Paper

1116 words - 5 pages in the Preamble. A Bill of Indictment was included to list the wrong that they believe were done, it gave a list of grievances which help build the case of why they deserve to gain their independence. In conclusion, they state what they want without confusion, which is a complete dependency from Britain and they create a declaration of war if Great Britain was to disagree with this agreement. (America’s founding documents, The U.S. National

OPERATIONS SUPPLY CHAIN MANAGEMENT and THE CORE - McGill - Assignment

1261 words - 6 pages additional expenses and production down time. High volume and low variety and due to high standardization the flexibility is low. CHAPTER 6, P.202, PROBLEM 1 A) Beak-even demand = Total fixed costs of process / (Unit price – Variable cost per unit) = $300,000 / ($23-$8) = 20,000 units 10/3/2017 Assignment 1 4 B) If the fixed cost increases, the break-even point would be higher. You would need to sell more products to cover the additional fixed costs. C

Role of the budget for Nairobi African Market, a local business in Moline Illinois - Liberty University BUSI730 - Assignment

1745 words - 7 pages Running head: REAL WORLD APPLICATION ASSIGNMENT 2 REAL-WORLD APPLICATION PAPER Faith Wanjiku Hansen Real-World Application Assignment 2 Liberty University School of Business 19th July 2019 The Role of a Budget The role of a budget is to ensure that all the plans for resources and acquisitions are provided for and the expectation of the business are met within a said period. A budget is essential because it is essential to a company in analyzing

Case Study Review on closing the achievement gap in schools - National Louis University doctorate class - Case Study Review

3438 words - 14 pages Wayne Valenti 8.28.18 Assignment: Case Study 2 TA012GEDLD An Analysis of the Case Race, Accountability, and the Achievement Gap by Karen L. Mapp, David A. Thomas, and Tonika Cheek Clayton Introduction The achievement gap in education refers to the disparity in academic performance between demographic groups of students. The achievement gap shows up in grades, state test scores, course selection, and dropout

Biopsychosocial Model of Addiction - LIBERTY UNIVERSITY - Assignment

917 words - 4 pages biological processes within the body such as the reward system. The reward system is a biological process that is designed to reinforce behaviors that are beneficial to the individual. In the case of an SUD this is where the dysfunction lies. By accident, certain compounds developed by chemist are capable of creating an intense but false signal in the brain’s reward system, memory centers and the higher cortical areas that control reward-seeking

Assessment in social work – application to a case study - The Open University - Essay

2097 words - 9 pages better and therefore work more efficiently for them in the long term (The Open University, 2014b). The pressures that social workers are under within their role could make them take what seems to be the easy option, in this case removing the service user from the environment of crisis and placing them within residential care. This is not what the crisis theory is promoting, I would need to be constructive and try dealing with the problems to

research paper about erratic power supply in africa (nigeria as a case study) - texas tech university/ grid - research paper

4421 words - 18 pages /9458/chapter/6#82 Kainz, R.J., M.H. Prokopyshen, and S.A.Yester. 1996. Life cycle management at . Pollution Prevention Review 6:71–83. Lee, R., M. Prokopyshen, and S. Farrington. 1997. Life cycle management case study of an instrument panel. Paper No. 971158 in the Proceedings of the Total Life Cycle Conference, Society of Automotive Engineers, April 6. Michigan Department of Environmental Quality. 1998e. Kokomo Transmission Plan Reuses Plastic

This assignment is for the PHIL 201 course - Liberty University PHIL 201 - Essay

652 words - 3 pages Elijah Walter Dr. Greg Schneeberger 2/18/19 After reading through the three short literary pieces assigned in this module and spending time in reflection about them, I have come to the conclusion that they all revolve around the theme of reality being a facade, or dream, and that the truth of existence may be too hard for people to handle, and would take time to get used to. The Matrix Synopsis states the idea of everyone leaving inside a dream

"PQI: Management of Suppliers" Case Analysis - Purchasing and Supply Management - Case Study

666 words - 3 pages Logan McShane OSCM 4080 – Case Study 28 February 2019 This case details how two leading companies in the automotive manufacturing industry, Toyota and Honda, develop close-knit and sustainable relationships with their supply base. These two companies have outperformed and outscored their competitors for years due in large part to the strategy they have implemented to build relationships with their most important suppliers. The supplier

a nasty ending for nasty gal case study - university of Michigan - case study

931 words - 4 pages I am going to discuss if Nasty Gal could avoid bankruptcy lastly, I will draw my own conclusion. ! 3 A Nasty Ending for Nasty Gal Response for case study questions there is no doubt that social media has help serval business growing up and contributed to its business models, basically ,The idea of Nasty Gal generated from an online space , Amouruso the owner of the company has been a heavy user of social tools to promote her business , she

BBA102 Report case study business of management - BBA Macquarie university - Case Study

1537 words - 7 pages ………………………..6 Conclusion………………………………………………………………7 Reference List……………………………………………………….….7 INTRODUCTION The success to creating a positive and dynamic environment begins firstly with understanding groups and managing teams. Sir Richard Branson: managing groups and team objectives explore the characteristics of group teams and behaviours, functions and roles of managers and approaches to management. Discussed within this case study involves the argument

Similar Papers

Dell Case Study, Questions As To Why Lead Time Is So Long And Suggestions For Solutions Liberty University Busi740 Assignment

1991 words - 8 pages Running head: DELL INC CASE STUDY DELL INC CASE STUDY Dell Inc., Improving the Flexibility of the Desktop PC Supply Chain Case Study Faith Wanjiku Hansen Discussion Board Week 3 Liberty University School of Business 10th July 2019 Abstract Dell Inc.: Improving the Flexibility of the Desktop PC Supply Chain Dell Inc. is one of the leading low-cost computer manufacturers that has a direct business supply chain without an intermediary involvement

Case Study Dell Manufacturing Case Study Dba Akron University Bus 790 Case Study

1487 words - 6 pages /d01220200f244527a18eb639aee65778 Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and managing the supply chain: Concepts, strategies, and case studies. New York: NY. McGraw-Hill Companies Suzanne, T. (2014). Valuing lead time. Journal of Operations Management, 32(6), 337-346. Retrieved from https://www-sciencedirect-com.ezproxy.liberty.edu/science/article/abs/pii/S0272696314000461

The Founding Documents Of The United States Liberty University Government Essay

804 words - 4 pages its power from the people. If the government misuses its power, the people have a right to form a new government. (Daley, 2018). Jefferson wrote that God gave rights to the people—“Life, Liberty, and the pursuit of Happiness”—and that no person or government should be able to take those rights away. (Daley, 2018). The Bible also discusses freedom and the pursuit of happiness in many Scriptures. For example, Galatians says: “For you were called

Deontology, Act Utilitarianism And The Pursuit Of Autonomy Mc Master University, Philosophy Case Study

1456 words - 6 pages Running head: DEONTOLOGY, ACT UTILITARIANISM AND THE PURSUIT OF AUTONOMY 1 Deontology, Act Utilitarianism and Pursuit of Autonomy Mina Pichtikova McMaster University Deontology, Act Utilitarianism and Pursuit of Autonomy 2 Olive is a healthy 12-year-old girl, caught in the midst of a complicated ethical dilemma. Her 10-year-old sister Nancy is at the end-stage of renal failure and requires a kidney transplant. Upon conducting medical tests, it