Dell Computer’s State‐of‐the Art Production Centers Using Vendor Managed Inventory Models

In: Business and Management

Submitted By amidak47
Words 287
Pages 2
Michael Dell reshaped the computer industry with build‐to‐order computers directly sold to consumers. His business model positioned the company for emerging internet sales , with one of the highest sales figures in the industry. But Dell has done more than streamlined the selling and distribution process, he has also streamlined the manufacturing process as well. Dell can deliver the latest technology exactly the way the customer wants it at blinding speed, which has earned them the nickname of “Dellocity”. Examples of their speed are; they delivered eight customized fully loaded PowerEdge Servers to NASDAQ within 36 hours of receiving the order, or when they delivered 2,000 PCs and 4,000 servers with proprietary and multimedia software delivered and installed at 2,000 different WALMART stores all in 6 weeks. How does Dell manage to do all this at such incredible speeds ?? Through close customer contacts and carefully orchestrated manufacturing and distribution system. Dell manufactures its’ computer systems in 6 different locations‐ Texas, Tennessee, Brazil, Ireland, Malaysia, and China. Dell has recently added a new factory in Round Rock, Texas, called the OPTIPLEX Plant. This factory is state‐of‐the‐art and there are only a handful of such factories in the world. The OPTIPLEX is a showcase of networked manufacturing. The factory is 200,000 SFT in size, but allocates only 100 SFT for incoming parts, that is enough for about 2 hours worth of inventory. Their finished product inventory company‐wide is on the average only 5 days worth compared to 60 to 90 days industry average. The OPTIPLEX houses only 2.5 days finished goods inventory. The OPTIPLEX produces in excess of 20,000 custom‐ordered machines a day. In the command…...

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