Inventory Management

Inventory Management

Assignment 2

-Types of Inventories

Apple manufactures mobile communication devices, personal computer as well as portal digital music players. In addition to these devices, Apple sells different peripherals, software, offers solutions for networking together with applications that are used in accessing devices. The famous devices manufactured by Apple incorporate iPad, iPhone, iPod and Macintosh computers.  The invention of the Graphical User Interface inspired the development of machines by Apple Company. The iPhone, which is celebrated globally as the known smartphone device provides similar roles and characteristics of computers.  The iPod is recognized with its music playing devices globally. The device has a larger capacity permitting users in storing a larger quantity of files in the form of audios. The iPad, which is the current device to be manufactured by Apple Company, bears a more excellent market value. It is 9.7 inches that are equivalent to textbook size. It takes similar features just like iPhones with no capabilities of sending receiving texts alongside calls.

The other company is Dell. Dell manufactures computers alongside other computer-associated devices.  These inventories manufactured by Dell are supplied to government officials and business firms. Dell’s specializations are laptop computers, desktops as well as accessories of computers like keyboards, projectors, devices for storage, among others.  Dell’s inventories are globally used because of their high speeds alongside diligent which offers convenience to its customers.

-Analysis of design concept integration of goods and services of these Companies

Both Dell and Apple Inc. have service programs and commodities that are convenient to use by the companies’ clients. These make the two firms to have customer care with dependable quality. Apple Inc. offers an essential service program known as iOS Direct Service Programs together with Apple Care Product. Such programs are designed for service providers, people, businesses, institutions and resellers. Apple care product offers a client with a warranty of one-year limited integration as well as complimentary telephone technical supports for ninety days when a client buys the product. For this service program, clients need to contact support system via telephone if they are having issues with a particular device purchased from the company. The company has several technical professionals who make these services exceedingly convenient to the customers. Also, iOS Direct Service Program offers units for screening for faults established in hardware as well as other essential replacements for the devices needed by the customer.

The products and services for Dell incorporate upgrades of computer parts, PC diagnostic and order support. PC diagnostic offers tools which are used in diagnosing as well as resolving problems on performance which clients might be experiencing. Order support assists clients in tracking their placed device orders alongside their convenient deliveries. The services for parts and upgrades provide clients with upgrading their software freely in addition to the replacement of the damaged devices which are still having warranties.

Question 3- Inventory Roles

Overall, firms need to maintain little inventory to reduce the risks of such stocks not being purchased. Consequently, computer firms are attempting to sustain low ration of inventories. Apple keeps inventory for five days. This is low as compared to the competitors like Lenovo and Dell, which retain their inventories for 15 and 7 days, respectively. The CEO of Apple, Cook, has received multiple attributes of operational prowess as well as unparalleled supply chains.

Before Cook’s arrival, the manufacturing, distributions and supply operations of Apple were significantly in a mess. Cook withdrew production done by contract manufacturers alongside closing down warehouse globally. During this period, Dell was building its name through pioneering the construct-to-order assembly of computers. Inevitably, this turned out to be an efficient model in support of the entire computer industry. Apple made Gartner Supply Chain in the year 2012, which is used in delivering complete solutions to their customers via firmly integrated hardware component designs, firmware, proprietary operating systems as well as ecosystem applications for running leading platforms in the company. Dell has been ranked in position four when it comes to the firm’s successful strategy in supply chain management. The supply chain management of Dell revolves around the four primary elements; partnering with suppliers, timely inventories, direct customers sales and building to order manufactures.

– Contrasts and Comparisons of four layouts in the two companies

In manufacturing and service firms, the design promotes positioning to increase outputs and minimize production complexity.  The four fundamental forms of plans are as follows:

1. Process layout- this is a form of functional design that concentrated on a batch of productions. Industries are subdivided into the basis of the same processes.
2. Line of product layout- for this form of designs, every facility for production and manufacturing are in the ways which promote steady flow into a single direction.

• Project layout- this is a layout where every facility is in a fixed position. Materials, machine, and man assemble at one assembly point.

1. Cellular layout-this assists in reducing complexities within the process layouts, where produced resources are grouped to be used in various products and clusters.

The two firms, Dell and Apple, offer many products to their clients. The computers manufactured from Dell utilize mishmash of assembly lines as well as manufacturing cells that are adaptable as per the technology advancements.

Evaluation of Metrics

Supply chains can be implemented by improving the following two metrics:

1. Offering excellent services when machines breakdown – Dell and Apple should put more focus on such operation strategy since it might bring about the loss within the manufacturing capacities alongside companies’ reputation in both long and short run.
2. Attaining operational excellence-This is a feature of the supply chain which require to put more focus on reducing total costs which are incurred in logistics and warehousing of certain products.

Improvements in inventory management of Dell and Apple

In the supply chain, inventory is deemed to be the lifeblood that is flowing from one node to the other. Each node is working within perfect positions in managing demand and supply in useful forms. Management of low inventory outcomes in sales loss while managing higher inventory brings about increment in labour and storage costs. It calls for figuring out the amount of inventory towards keeping stock to flow. These are some of how can be used by Dell and Apple to enhance inventory management:

1. Adoption of excellent policies for safety stocks concerning granularity and time cycle. This incorporates many attributes such as patterns of consumptions, demand variability, criticality and velocity of the products. Company’s precision on variance handling shall better the companies’ capability of managing inventory.
2. By adding and aligning planning operations with sales-This is the best technique for forecasting that promotes supply chains and improves demand plan. The key goal is to bridge the gap between the three entities, that is, inventory, sales and operations.