Inventory Management Case Study Dell

More importantly, profits were soaring, thanks to the cost structure of the direct, build-to-order model.

Dell’s most recent 26% growth rate continues to outpace the industry as a whole, and it has not been able to match its earlier growth rates of 50% a year.

For the research purpose the studies available on BOSC are reviewed and they are listed in Table 1 (Summary of references under the detailed classification scheme of the literature on BOSC). Build to Order Supply Chain Management The manufacturing continuum can be classified as make-to-stock (MTS), assemble-to-stock (ATS), make-to-order (MTO), and engineering-to-order (ETO). MTO indicates the manufacturing of component and parts along with assembly, but BTO includes mostly assembly operation, where the component and parts outsourced [5] . And that is why different companies are changing their strategy and moving towards the BTO and establishing BOSC for increasing responsiveness. (2006) Build-to-Order (BTO) supply chain management system have the capability to quickly build standard or mass-customized products upon receipt of spontaneous orders without forecasts, inventory, or purchasing delays [6] .

In this environment products may be shipped directly to individual customers, to stores or dealers, or as a response to assemblers’ “pull signals” (assemblers’ signals that certain parts are needed right away for assembly).

From the above analysis represented into Tables 2-6 which includes total market share of the major computer manufacturers around the world covering the timeline of 1985-2017.

It is clearly visual that total PC market share of Dell Inc.Different company is developing standardized laptop but no one is actually paying attention to the customer preference. (2017) stated that each of the stages creates extra charge to the final products [3] [4] . also stated that the more stages present in supply chain, the more complex network creates [4] .This work represents a model of BTO production of laptops and the profit estimation which represents how BOSC strategy on DELL laptop would increase the profit. Introduction A typical supply chain network consists of various stages i.e. As the complexity increases, more highly skilled personnel will be required, which eventually increases the cost of supply chain.background, their business model (direct sales model), customer relationship, build-to-order production, refinement of their model, sale and services. and its success in computer manufacturing industries directs that applying BOSC strategy on laptop manufacturing will be so much profitable.The primary aim of the literature search was to help researchers and practitioners develop an effective BOSC and by implementing it improve the supply chain profitability of DELL Inc.Dell grew rapidly and in the mid of 1990s, its sales reached an inflection point, soaring from .5 billion in 1994 to billion in 1999.By 1999, Dell had become the number one PC seller in the United States, and was number two worldwide.According to Zuckerman (1997) Dell has streamlined both procurement and inventory by redesigning its computer so that different models utilize as many of the same components as possible [60] .This reduced the number of inventory parts and the complexity of managing their procurement.And it was hit hard by the slowdown in PC sales in late 2000.The result has been a sharp fall in Dell’s stock price and a reminder that Dell is vulnerable to the brutal price competition and cyclical demand of the PC industry [7] . Literature Review Several review articles were found on Build-To-Order supply chain management, but none on BOSC provided an analytical framework for a critical review of the literature on Total Supply Chain Management (TSCM) which can be best suited for newly proposed BOSC strategy in laptop production of DELL Inc.


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