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Dell Essay

287 words - 2 pages

Dell |
Just in Time |
|

Introduction: What are inventory systems and why area they used?
THE BUSINESSES OF YOUR CHOICE: Describe the businesses that your team chose to investigate:
(i) What kind of inventory systems do they use?
(ii) what are the advantages of each inventory system?
(iii) what are the challenges?
(iv) are the businesses happy with the current inventory system?
(v) are the ...view middle of the document...


Conclusion: So what can you conclude from your search?

Just in Time inventory system is where a company orders parts for their products when they are needed. The advantage of having JIT is that it eliminates the need to have inventory stored in a company’s own warehouse. It can actually maximize space if there is a need to expand production. With little need to have stored inventory, more production space can be created.
Dell currently uses JIT inventory system when it comes to producing computers for their consumers. Some advantages of Dell using JIT are the fact that they have suppliers that will stand for the requirements that Dell have implemented for JIT, Short turnaround time from order to arrival, and productivity has increased.
One downfall to Dell or any company with JIT inventory system is that the companies are reliant on just a select few of suppliers. Some problems may arise within the company that could put a stain on the relationship the company has with the suppliers.
Dell is happy with the inventory system and has no plans on changing it any time soon.

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