Lean Management

2.3 Inventory management
According to Atkinson (2005)

‘Traditionally, the focus on inventory management has always been about not running out of finished goods. Manufacturers would stockpile excessive amounts of raw materials, work in process, and finished goods with regard not for holding costs but only for protecting against a stock-out. If demand was higher than expected or a supplier missed a shipment, inventory would bail the manager out. As long as outbound shipments were satisfied, so were the operations managers’.

Inventory is a major issue in every organization. If there are high inventory thus high cost such as labor cost, maintenance cost and carrying cost will be incur onto the company. Therefore, Dell with a name of good inventory management had been a major competitor for other computer manufacturer and leads to being a benchmark organization to follow. As we, all know inventory does not add value to an organization if it is too much while it is also a waste if too less is kept that cannot meet end users demand.
Persediaan merupakan isu utama dalam setiap organisasi. Jika ada persediaan tinggi sehingga kos tinggi seperti kos tenaga kerja, kos penyelenggaraan dan kos tercatat akan dikenakan kepada syarikat. Oleh kerana itu, Dell dengan nama pengurusan persediaan yang baik telah menjadi pesaing utama bagi pengeluar komputer lain dan mengarah menjadi organisasi yang menjadi acuan untuk diikuti. Seperti kita, semua tahu persediaan tidak menambah nilai bagi organisasi jika terlalu banyak sementara itu juga sampah jika terlalu sedikit disimpan yang tidak dapat memenuhi permintaan pengguna akhir.
3.5 Inventory management at Dell
The first thing that needs to be known is why low inventory has such a great effect on Dell's overall performance and the motive is quite simple because the issue of holding too much inventory will lead a problem as the computers depreciate at a very high rate where the computer loses 1 % of its value every week (Atkinson,...