CASE 1: HOW DELL IS MANAGING ITS SUPPLY CHAIN http://wps.prenhall.com/wps/media/objects/2519/2580469/images/Realworldcase1.html The Problem Michael Dell started his business as a student from his university dorm by using a mail-order approach to selling PCs. This changed the manner in which PCs were sold. The customer did not have to come to a store to buy a computer‚ and Dell was able to customize the computer to the specifications of the customer. The direct-mail approach enabled Dell to underprice
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QUESTION 1 Why does L5 incur higher manufacturing and logistic costs than L6? In L5‚ the chassis (without motherboard installed) are shipped to the US first and followed by the motherboards being airfreight to the US as shown in Figure 6-4. This indicates a higher logistic cost from airfreight if motherboard is not manufactured in time to be shipped (via ocean) from China to US where motherboard is in need to be assembled with the empty chassis to satisfy surge demand. At the same time‚ if
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Introduction Purpose of this assignment is to analyse the case study of the Dell Inc‚ relating to the seven questions asked on the case study. Objective of the case study analysis is to get a deeper understanding of the Global production‚ outsourcing and logistics. 2. Company overview Dell is a global information technology company that offers its customers a broad range of solutions and services delivered directly by Dell and through other distribution channels. Their focused is to provide technology
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MANAGING THE BULLWHIP EFFECT Joseph H. Wilck‚ IV Ph.D. Dual Degree‚ Industrial Engineering and Operations Research‚ College of Engineering The bullwhip effect is the inherent increase in demand fluctuation up the supply chain (i.e.‚ away from customer). Managing the bullwhip effect is minimizing the fluctuation and variation of the demand (i.e.‚ orders from one stage of a supply chain to the next stage of the supply chain) throughout the supply chain. This paper will offer a literature
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The Bullwhip Effect in Supply Chains Hau L. Lee • V. Padmanabhan • Seungjin Whang Distorted information from one end of a supply chain to the other can lead to tremendous inefficiencies: excessive inventory investment‚ poor customer service‚ lost revenues‚ mis^ided capacity plans‚ ineffective transportation‚ and missed production schedides. How do exaggerated order swings occur? What can companies do to mitigate them? ot long ago‚ logistics executives at Procter & Camble (P&C) examined the order
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BACKGROUND The bullwhip effect occurs when the demand is amplified in the supply chain as they move up in the channels of the supply chain of a firm. Distorted information from one end of a supply chain to the other can lead to tremendous inefficiencies. Companies can effectively counteract the bullwhip effect by thoroughly understanding its underlying causes. Procter & Gamble (P&G) introduce this term. Logistics executives at Procter & Gamble (P&G) examined the order patterns for one of their
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INTRODUCTION In today’s business world‚ supply chain management has never been more important. Operational efficiency hinges on the ability to properly forecast and meet demand from customers‚ wholesalers‚ distributors‚ and many other key players. Any distortion of this information can be very costly and may require permanent changes to a firm’s supply chain infrastructure. Perhaps the most infamous source of this demand data variability is the bullwhip effect. DEFINITION & CAUSES In 1990‚ executives
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impact of bullwhip effect on supply chain performance Definition of bullwhip effect: Through the numerous stages of a supply chain; key factors such as time and supply of order decisions‚ demand for the supply‚ lack of communication and disorganization can result in one of the most common problems in supply chain management. This common problem is known as the bullwhip effect; also sometimes the whiplash effect. The bullwhip effect can be explained as an occurrence detected by the supply chain where
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Ways to cope with Bullwhip effect As we known‚ Bullwhip effect threatens Company’s profit. So‚ the means that how company cope with this effect is so important in supply chain management. There are five steps to avoid Bullwhip effect. Firstly‚ reducing uncertainty of demand forecast. We can use centralized demand information that the production of each stage of supply chain bases on the actual demand forecast. As we know‚ production based on the actual demand will make a more accurate
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..........................................................…………....3 Supply Chain Management Defined...................................................…………...........3-5 Dell’s Background………………………………………………………………………5-8 Dell’s Products .................................................................................................8-9 Supply Chain Dell Style (Situation Analysis)‚……………....................…….....10-11 Dell Weaknesses……..................................................……………………………11-13
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