Dell Inc Paper Essay Example | Topics and Well Written Essays - 750 words

Dell Inc Paper - bear witness ExampleIn addition, the third party integration cost is higher than the cost of integration do by contract manufacturers. The US labors costs are higher than that of China. From the figure 6-4, it is obvious that in L5 the descriptor (without motherboard) is shipped to the United States first, and subsequently the motherboards are airfreighted to the country (Simchi-Levi et al., p.184). Since the motherboard is not manufactured at the time of shipping the chassis, the partnership incurs additional logistics costs from airfreight.While analyzing the six of the proposed manufacturing solutions to the Dell, it is advisable for the company to manage the 3PI (3rd Party Integration) directly to correct its supply chain efficiency. When the 3PI is managed by Dell directly, the Dell management can enjoy more authorisation over its supply chain activities, and ensure uninterrupted flow of finished products. Another major favour of this manufacturing soluti on is that it would help the company trim down integration costs by employing cheap labor. In addition, this manufacturing option may assist the firm to minimize its dependence on external parties. The potential break of this solution is that Dell has not adequate expertise in the integration process and this issue may lead to product quality problems.If the supply chain shortage gets deteriorated, the company cannot manage the situation by simply practicing the option 4 (Dell managed 3PI). Under this circumstance, the organization must switch to the option 3A Integration at SLC/hub. This option is relatively less complex for worldwide procurement, and therefore it may assist the company to judge the issue. In addition, the management of supply quality engineering is minimized under this option, and hence the chipset supply is liable(predicate) to improve. However, the option 3A is not very effective considering the difficulties associated with cost accounting. Finally, additio nal production control and