Dell Inc Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Dell Inc Case Study Solution

Effective Strategies for Optimal Manufacturing Option

Furthermore, other effective strategies for determining the optimal manufacturing option could be thestrcik contractual policies with the chipset’s suppliers and the push and pull strategy. In addition to this, proper checking, inventory control management and the bulk purchase at the same time could reduce per unit cost and operational complexity.

Question: 5

Root Causes

A significant increase in the L5 manufacturing as compared to L6 manufacturingwas witnessed in March 2005. This increase was entirely dependent upon the incapability of Dell to provide motherboards on time, which created engineering lead time, inaccuracy of exact forecast, supply issues and the volatile demand. In addition to this, motherboard’s unexpected demand was increased because of chipset supplier issues, whichthe company was not able to provide an agreed quantity of chipsets on time. Thus, this issue created a need to identify more sources for chipset suppliers and it would result in an increased lead time as well as the risk of notmeeting its customers demand.(master, 2006).

Recommendations

The most attractive strategy in order to compensate these critical issues would be to adopt pull and pushstrategy, which suggests to act according to the prevailing demand and situation. Moreover, other relevant options could be:an accurate aggregate forecasting, push and pull strategy, proper communication with the suppliers and MC’s and reducing the lead times................................

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