Dell Essay

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Dell Inc. Dan Kirkman MSSCM 551 – Cohort 21 May 20, 2012 Table of Contents Page I. Executive Summary 3 II. Situational Analysis 4 III. Major Problem & Supporting Analysis 9 IV. Major Assumptions 11 V. Possible Solutions 11 VI. Choice & Rationale 16 VII. Metrics 17 VIII. Project Plan 20 IX. Conclusion 21 X. References 22 XI. Appendix 23 A. SWOT 23 B. Financial Analysis 26 C. Five Force Model 27 D. Portfolio Analysis 28 E. Fishbone 29 F. Total Cost Analysis 30 G. Break Even Analysis 31 H. Project Plan 32 I. Executive Summary Dell’s 2009 military contract revenues were $983,000,000. 2010 revenues were $1,263,236,000 and in 2011 Dell’s military contracts resulted in revenue of $2,180,421,000. “Dell offers innovative answers for agency needs. Our case-by-case approach helps provide your agency with technology and services that fit both your needs and budget. Our solutions can serve you everywhere, from the back office to the front lines” ( The industry has done a much better job at managing their inventory than Dell Inc. has. The inventory turnover for Dell in 2011 was 36.0 while the industry had an average of 45.61. Dell’s inability to properly forecast demand can lead to holding on to inventory longer than necessary. In 2011 the industry paid their customers in 70 days, and Dell paid in 82 days. This is 12 more days that the industry can hold on to cash and invest in other items before they have to release payments. Dell’s inability to properly forecast the customer’s demand is the cause of their excess supply. Dell must consider

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