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Overview

In 600–800 words, respond to a series of questions about the past success and current challenges of Dell’s supply chain, and offer your thoughts regarding Dell’s distribution strategy, based on assigned library articles.

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

• Competency 1: Design a supply chain to support an organizational strategy.
  • Explain why a company’s supply chain strategy is successful.
• Competency 2: Improve efficiency in the supply chain.
  • Describe the main challenges facing a company.
• Competency 3: Manage a supply chain in order to satisfy customers.
  • Describe how a company has changed its supply chain to satisfy its customers.
• Competency 4: Communicate in a professional manner that is consistent with expectations for supply chain managers and participants.
  • Exhibit proficiency in writing, critical thinking, and research; adhere to APA style and formatting.

  Context

  Supply Chain Basic Functions

  The functions basic to all supply chains are:

  • Planning.
  • Sourcing.
  • Making.
  • Delivering.

  Fundamental decisions are required from supply chain managers to define strategy in developing a supply chain that will effectively meet these four requirements.

  Supply Chain Planning

  Planning or forecasting includes decisions needed to define operations of the other four supply chain functions. Three approaches to supply chain planning are:

  • Demand forecasting.
  • Product pricing.
  • Inventory management.

  Sourcing or procurement involves decisions that determine the source of the resources that a firm requires for operations. This function traditionally included activities such as purchasing, consumption management, vendor selection, contract negotiation, and contract management. Recent global developments and trends in outsourcing have made this a dynamic changing role for supply chain managers.Making or producing is the economic process of converting resources into goods and services. Typical activities in this function include product development and design, operations facility management, and production scheduling

  Distribution or delivering can include order management, delivery scheduling, and order processing. Inventory placement and delivery centers are of prime importance in supply management as the cost effectiveness of the entire system can rely upon the efficient delivery function

Questions to Consider

To deepen your understanding, you are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of the business community.

• Why is it important to consider uncertainty when evaluating supply chain design decisions?
• What are the major sources of uncertainty that can affect global supply chain decisions?
  • Consider the financial, logistic, political, natural, cultural, and technological sources of uncertainty.

Resources

 

• Gray, M. (2007). Revolving around the customer [supply chains customisation]. Manufacturing, 86(6), 28–31. doi:10.1049/me:20070603.
• Kapuscinski, R., Zhang, R. Q., Carbonneau, P., Moore, R., & Reeves, B. (2004). Inventory decisions in Dell’s supply chain. Interfaces, 34(3), 191–205. doi:10.1287/inte.1030.0068.
• Blanchard, D. (2012). Dell taps into innovation to reach emerging markets. Industry Week/IW, 261(11), 45.

Assessment Instructions

Dell has been selling computers for over 25 years with its unique, direct build-to-order sales model. After reading the related articles from the Capella library (linked in the Resources under the Required Resources heading), answer the following questions:

• Why has Dell’s direct supply chain been so successful?
• Describe the main supply chain challenges that Dell is now facing and provide your recommendations for solving them.
• Was Dell’s decision to sell its products via retail outlets a viable solution? Do you agree with this distribution strategy? Why or why not?

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