Revitalizing Dell Case Study Help
Low Risk Of Inventory Obsolesce.
In Just in Time model; the inventory level relies on customer demand. When the customer makes an order; the whole supply chain gets into the operation. The company doesn’t need to have stocked up inventory in itswarehouse. With this, there would be less risk of unwanted stock left sitting in your warehouse.
The Just in Time model has some disadvantages as well. Under this model, the whole supply chain of Dell Companywould be required to operate efficiently. If any of the members of supply chain step back; the entire supply chain would then get badly affected. The company might not be able to meet its customer requirements and the customer may get discouraged by the company’s inefficient services, which might compel them to move towards Dell’s rival companies.
To conclude, the Just in Time model will help Dell in cost reduction and improving its profit margins, but the company is required to be highly attentive under this model....................................
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