Inventory Management
Inventory Management
Apple Inc. and Dell Inc.
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BUS430 Operations Management OM4
Strayer University
Dr. James Collins
June 13, 2014
Introduction
Every company irrespective of the type of product or service that it sells holds a form of inventory in its daily business operations. Inventory is generally held in the form of finished goods, work in progress i.e. unfinished products as is normally the case in manufacturing and raw materials. Inventory is considered a current asset in a company since it can be itemized in the books of accounts and has a definite economic value. Companies are interested in holding optimum inventory levels at all times since excess inventory results in incremental costs and blocks working capital which affects the overall performance of the company at the end of each financial year (Ou, Liu, Hung & Yen, 2010). Holding less than optimum inventory on the other hand, can easily reduce a company’s market share as clients move to competition due to disruption in supply of products into the market. Inventory management thus involves continuous monitoring of inventory levels, smart planning and quick decision making in the part of management of a company. Companies must therefore be careful not to overstock the wrong product, over-order the wrong inventory or under stock since each has far reaching implications to the company’s performance (Bernardel, Panizzolo & Martinazzo, 2012). The two reputable multinational corporations that are focused in this assignment are Apple Inc. (Apple) and Dell Inc. (Dell). These two companies manage inventory as part of their daily business operations. Apple was started in 1976 by Ronald Wayne, Steve Wozniak and Steve Jobs. The company is a major multinational corporation and its headquarters are located in Cupertino, California. The company’s main business activity is designing, developing and marketing personal computers, computer software and consumer electronics (Grinnell &
Apple Inc. and Dell Inc.
XXXXXXXX
BUS430 Operations Management OM4
Strayer University
Dr. James Collins
June 13, 2014
Introduction
Every company irrespective of the type of product or service that it sells holds a form of inventory in its daily business operations. Inventory is generally held in the form of finished goods, work in progress i.e. unfinished products as is normally the case in manufacturing and raw materials. Inventory is considered a current asset in a company since it can be itemized in the books of accounts and has a definite economic value. Companies are interested in holding optimum inventory levels at all times since excess inventory results in incremental costs and blocks working capital which affects the overall performance of the company at the end of each financial year (Ou, Liu, Hung & Yen, 2010). Holding less than optimum inventory on the other hand, can easily reduce a company’s market share as clients move to competition due to disruption in supply of products into the market. Inventory management thus involves continuous monitoring of inventory levels, smart planning and quick decision making in the part of management of a company. Companies must therefore be careful not to overstock the wrong product, over-order the wrong inventory or under stock since each has far reaching implications to the company’s performance (Bernardel, Panizzolo & Martinazzo, 2012). The two reputable multinational corporations that are focused in this assignment are Apple Inc. (Apple) and Dell Inc. (Dell). These two companies manage inventory as part of their daily business operations. Apple was started in 1976 by Ronald Wayne, Steve Wozniak and Steve Jobs. The company is a major multinational corporation and its headquarters are located in Cupertino, California. The company’s main business activity is designing, developing and marketing personal computers, computer software and consumer electronics (Grinnell &
References: Bernardel, F., Panizzolo, R., & Martinazzo, D. (2012). Evaluating Inventory Management Performance: A Preliminary Desk-Simulation Study Based on IOC Model. International Journal of e-Education, e-Business, e-Management and e-Learning. Retrieved May 17, 2014 from http://search.proquest.com/docview/1440420998?accountid=45049 Collier, D. A., & Evans, J. R. (2013). OM4. Mason, OH: South-Western Cengage Learning. Print. Grinnell, J., & Muise, C. (2010). Dell Computers: Competing Toward Decline? Journal of Business Case Studies. Retrieved May 18, 2014 from http://search.proquest.com/docview/516343799?accountid=45049 Martin, B. R. (2010). Inventory Management, Metrics, and Simulation. ProQuest Dissertations and Theses. Retrieved May 24, 2014 from http://search.proquest.com/docview/853139709?accountid=45049 Ou, C. S., Liu, F. C., Hung, Y. C., & Yen, D. C. (2010). A Structural Model of Supply Chain Management on Firm Performance. International Journal of Operations & Production Management. http://dx.doi.org/10.1108/01443571011039614 Smith, W. (2013). How to Improve Inventory-Management Efficiency. The Controller 's Report. Retrieved May 25, 2014 from http://search.proquest.com/docview/1428149080?accountid=45049 Wakabayashi, D. (2014, Jan 09). Apple Devices Flow into Corporate World. Wall Street Journal (Online) Retrieved May 24, 2014 from http://search.proquest.com/docview/1476205182?accountid=45049 Woodward, D. (2009, 04). Revival Act. Director, 62, 32-36. Retrieved May 25, 2014 from http://search.proquest.com/docview/218970604?accountid=45049 Worthen, B. (2011, Nov 16). Dell Outlook Cloudy --- Computer Maker 's Profit Rises, But Floods Hurt Supplies. Wall Street Journal Retrieved May 17, 2014 from http://search.proquest.com/docview/904000623?accountid=45049