Dell Computers: a Case Study in Low Inventory

When managers discuss low inventory levels, Dell is invariably discussed. Hell, even I've mentioned Dell on this site. So why all the commotion? Has their low inventory Really  helped out that much? In short, yes. This article is primarily going to discuss how much it helped. This article will not discuss how they achieved such high inventory turns using a state of the art just in time inventory system. Reasoning behind need for lower inventory The first thing that needs to be discussed is why low inventory has such a great effect on Dell's overall performance. The reason is quite simple: computers depreciate at a very high rate. Sitting in inventory, a computer loses a ton of value. As Dell's CEO, Kevin Rollins, put it in an interview with Fast Company: â€Å"The longer you keep it the faster it deteriorates — you can literally see the stuff rot,† he says. â€Å"Because of their short product lifecycles, computer components depreciate anywhere from a half to a full point a week. Cutting inventory is not just a nice thing to do. It's a financial imperative. † We're going to assume that the depreciation is a full point per week (1%/week) and use that to determine how much money high inventory turns can save Dell. This means that for every 7 days a computer sits in Dell's warehouses, the computer loses 1% of its value. Ok, now that we know how much Dell loses for each day, let's take a look at some of Dell's data over the past 10 years that I pulled from www. hemanufacturer. com What I got from this was the inventory turns. An inventory turn, as this website successfully describes it, is â€Å"cost of goods sold from the income statement divided by value of inventory from the balance sheet†. Typically, this is turned into a value showing how many days worth of inventory a firm has by dividing inventory turnover by 365. I divided the inventory turnover by 52 in order to show how many weeks worth of inventory Dell holds. Key point to notice here is that Dell was carrying over 10 weeks worth of inventory in 1993. By 2001, Dell was carrying less than 1 week's worth of inventory. This essentially means that inventory used to sit around for 11 weeks and now it sits around for less than 1 week. So what does this mean for Dell? Remember, computers lose 1 percent of their value per week. This isn't like the canned food industry where managers can let their supplies sit around for months before anyone bats an eye. Computers aren’t canned goods, and as Kevin Rollins of Dell put it, computers â€Å"rot†. The longer a computer sits around, the less it is worth. That said, due to depreciation alone, in 1993 Dell was losing roughly 10% per computer just by allowing computers to sit around before they were sold. In 2001, Dell was losing less than a percent. Based on holding costs alone, Dell reduced costs by nearly 9%. Since 2001, Dell has continueed to lower inventory. Looking at their latest annual reports, day's inventory has dropped by approximately a day. Hopefully this article provided you with a practical example that demonstrates the positive effects lower inventory can have on a firm's overall costs. For more information regarding lawyers in the Texas area, check out Dallas Fort Worth trucking accident attorney. For more basic information regarding holding costs, please read A Simplified Look at the Pros and Cons of Inventory.

charant Characterization in Sophocles Antigone Essays -- Antigone es

This essay will illustrate the types of characters depicted in Sophocles’ tragic drama, Antigone, whether static or dynamic, flat or round, and whether portrayed through the showing or telling technique.    Martin Heidegger in â€Å"The Ode on Man in Sophocles’ Antigone† explains, in a rather involved theory,   the destruction of Creon’s character:    The conflict between the overwhelming presence of the essent as a whole and man’s violent being-there creates the possibility of downfall into the issueless and placeless: disaster. But disaster and the possibility of disaster do not occur only at the end, when a single act of power fails, when the violent one makes a false move; no, this disaster is fundamental, it governs and waits in the conflict between violence and the overpowering. Violence against the preponderant power of being must shatter against being, if being rules in its essence, as physics, as emerging power(98).    The dialogue, action and motivation revolve about the characters in the story (Abrams 32-33). Werner Jaeger in â€Å"Sophocles’ Mastery of Character Development† pays the dramatist the very highest compliment with regard to character development:    The ineffaceable impression which Sophocles makes on us today and his imperishable position in the literature of the world are both due to his character-drawing. If we ask which of the men and women of Greek tragedy have an independent life in the imagination apart from the stage and from the actual plot in which they appear, we must answer, ‘those created by Sophocles, above all others’ (36).    Surely   it can be said of Sophocles’ main characters that they grow beyond the two dimension ment of his edict; he changes after Teiresias’ visit and warning. Ismene and Haemon become dynamic later in the tragedy. Rarely does the dramatist use the chorus to convey information; most of this comes from exchanges of dialogue, which would be the showing technique.    WORKS CITED    Abrams, M. H. A Glossary of Literary Terms, 7th ed. New York: Harcourt Brace College Publishers, 1999.    Antigone by Sophocles. Translated by R. C. Jebb. no pag. http://classics.mit.edu/Sophocles/antigone.html    Heidegger, Martin. â€Å"The Ode on Man in Sophocles’ Antigone.† In Sophocles: A Collection of Critical Essays, edited by Thomas Woodard. Englewood Cliffs, NJ: Prentice-Hall, Inc., 1966.    Jaeger, Werner. â€Å"Sophocles’ Mastery of Character Development.† In Readings on Sophocles, edited by Don Nardo. San Diego, CA: Greenhaven Press, 1997.

Property & Law Essay Example | Topics and Well Written Essays - 750 words

Property & Law - Essay Example nstitutional arrangements by diminishing substantially the role played by the church (or religious institutions more broadly) in shaping human-to-human and human-to-nature interactions† (Norton & Bieri 4). As opposed to medieval scholars, the representatives of humanism studied not the God, but humans, their relations with other people, with the state and the society. Two main directions were developed in socio-political sciences. The first is theoretical justification of a necessity to replace feudal and class inequality with legal equality fixing the right for property ownership, personality protection from religious and feudal tyranny. The second was political ideology of the lower class, predecessor of working class, which was based on the ideas of Utopian socialism. The state submits to society, which in its turn submits to a personality. Only a part of the rights of a personality, which is defined by the attitude of a person to a property is transferred to e government: t he more property, the more political rights, but also the more obligations to the state, which is guarding this property. Failure to provide the abovementioned function makes the government illegal and provides the citizens with the right for opposition. The analysis of a problem of a personality, his/her valuable attitude towards the surrounding reality became the basic principle of scientific researches of this period. Renaissance was characterized by radical reorganization of socio-political and spiritual life. Political knowledge became an autonomous trend, political problems found comprehensive reflection in humanistic literature and caused shifts in the system of political and legal thinking. Integral rights of the personality, which can’t be transferred to the state, were also defined: the rights for life, freedom, equality, property ownership. By the right of property there are essential distinctions between the European and Anglo-American systems. The European system regulation

Project Management 4 Essay Example | Topics and Well Written Essays - 250 words

Project Management 4 - Essay Example formation certain mechanism can be adopted which may include meetings, seminar, pamphlet sharing within the organization or other sources of enabling knowledge information. Incase effective communication is not being provided or is not in place, mechanism would be introduced for enhancing the overall flow of information, and this would be done by removing the barriers if any may exist. In case the communication means are not effective, proper guidelines would be devised, roles would be clearly defined and the task at hand would be better explained both from managerial view point and the technical view point. Technology is of high importance with regard to the communication purpose (Beck et.al 2009). For this reason state of the art devices and technological equipment must be incorporated into the system which enable inside the organization and outside the organization effective communication

Information Management and a Business Environment Research Paper

Information Management and a Business Environment - Research Paper Example Ciena Corporation was founded in 1992, listed on the NASDAQ stock exchange (symbol CIEN) in 1997, and included in the S&P 500 market index in 2001. The company is headquartered in Linthicum, State of Maryland, USA, with offices located all over the US and Canada as well as Europe and Asia, totalling approximately 1500 employees. Ciena’s founding mission was to design, manufacture and sell optical transport and switching equipment. The company pioneered DWDM technology and became a world leader in the space. Following four acquisitions since 2003 and several key technology partnerships, Ciena deliberately augmented its portfolio to address the network applications with the most business value to its customers. My role as Human Resources Generalist for EMEA incorporates recruitment for the region as well as providing a fully supportive Human Resource/personnel function. There is a great need for effective Information Management within a business environment. The prime focus of the fieldwork was, therefore, the Travel Agent outlet, using a methodology designed to learn through interviews with counter staff what role the use of view data links to Tour Operators played in the servicing of customers (Feeny D. F., and Brownlee C. G. (2001). Subsequent interviews took place with management representatives of leading Tour Operators to elicit the role they saw for systems links to travel agents, and how it related to their overall strategy for competing in the industry. HR representatives interviewed were presented with a standard customer set and asked to explain how they would respond to each customer type.

Company Law Essay Example | Topics and Well Written Essays - 5000 words

Company Law - Essay Example n be altered by special resolution.3 However, any alteration must comply with the provisions contained in the company’s Memorandum of Association and the current Companies Acts. The Memorandum sets out the objects of the company and what the company can do. Therefore in the event a provision of the Articles is inconsistent with the Memorandum it will be overruled.4 Any alteration of the company’s Article of Association must be conducted in good faith and for the overall benefit of the company.5 The underlying rationale is the extent to which the majoritys power is contained so as to prevent majority oppression of the minority. Put another way, the principles of common law and equity effectively bind the majority share holders in the manifest exercise of their powers at the expense of minority shareholders.6 The courts have consistently approached the question of alteration of a company’s Articles of Association with extreme caution. There are many variants that are potentially conflicting. For one thing a fine balancing of the company’s interests and the interests of the members of the company as a body is relevant. The doctrine of majority rule is as equally important to the court as is the protection of the minority from oppression by the majority. Since by virtue of Section 9 of the Companies Act 1985 a majority can alter or amend provisions contained in the Articles of Association, it is important to the court that this is not accomplished by discriminatory or fraudulent means or motives on the part of the majority. The doctrine of majority rule was introduced in Foss v Harbottle. The rationale behind Foss was that any difficulties within the structure of the company ought to be dealt with by ratification by the majority shareholders.7 Inherent in this principle is the courts’ recognition of the company’s right to alter its Articles of Association. Jenkins LJ said, ‘†¦where the alleged wrong is a transaction which might be made binding

The nature of perfectly competitive markets Essay

The nature of perfectly competitive markets - Essay Example The paper is objective to present two ways of observing at what the perfect competition mean in terms of neoclassical economics. The very first focus should be on the lack of ability of one agent for affecting prices. This matter can be justified by the fact that one consumer or firm is very small if compared with the entire market and the presence or absence of the firm or consumer does not affect the equilibrium price. The hypothesis of impact of each and every agent on the equilibrium price was done by Aumann in the year of 1964. There are some differences between the approach of Aumann and the normal textbooks (Robert, 1966). The firms or consumers have their own power to decide the prices of their own products but the thing is it does not affect the market. Secondly, the consumers and agents consider the price as their parameters. The results of both the approaches are almost same. Another approach of perfect competition can be achieved in terms of the consumers taking advantage by eliminating the some exchange opportunities that are profitable. The competition in market increases when the arbitrage takes place in market faster. The average market price can be adjusted if the market is more competitive. It also depends on the supply and demand of the products. According to this approach, the meaning of perfect competition is the adjustments occur instantly in perfect ways. Firstly, the notion of the perfect competition needs to be understood. The following properties must be ensured so that a "perfect competition" is possible: many buyers and sellers homogeneous goods full market transparency prevails all market participants are "price taker" market participants have no influence on the price of the goods No transaction costs No taxes free market access In a perfect market, supply equals demand. Thus, there is only one price where the market is cleared. This is called the equilibrium price. On the basis of market transparency, it is not possible to achieve excess profits. This means no profits on the pay related factors (rent, interest, and wages) beyond production. The provider cannot rate any higher price because they would find no buyers and the buyer can not demand a lower price because no company in the market would offer a lower rate. A market consists of potential buyers, who determine what amount of a commodity should be brought into the market (O'Sullivan, 2003). The demand from retailers determines the supply of goods. The market is not tied to a particular place but can be seen as abstract. There are different considerations which are provided in a perfect competition market. The problem with perfect competition markets is that after the companies have entered or left the market, equilibrium sets in. This does not let profits to increase and all the companies involved are stuck in a situation with no improvement. A demand curve can be used to explain this. The following demand curve D shows the relationship between commodi ty prices and the quantity demanded by the consumer. The demand is determined by the price of the goods. Price is on the Y axis and quantity is on the x axis. Law of demand curve states that other things being equal; the demand decreases if the price rises and if the price drops. Thus, the negative demand depends on price. Demand curve refers to a single company, and measures the correlation between output and market price. The demand curve is not only dependent on the