42 Pages Posted: 7 Aug 2008
Date Written: July 25, 2008
Dell's supply chain for desktops involves Asian vendors shipping components by sea to several U.S. plants. While suppliers are responsible for shipping enough inventory, Dell can re-route and expedite their shipments while in transit and also transfer on-hand inventory in order to balance supply across sites. This paper describes the development, implementation and impact of the process and optimization-based control system now used by Dell to address this supply routing challenge for its US-bound monitors. This new methodology is estimated to have reduced Dell's inventory re-positioning costs for monitors by about 60%.
Keywords: Dell, supply chain, make-to-order manufacturing
Suggested Citation: Suggested Citation
Foreman, John and Gallien, Jérémie and Alspaugh, Julie and Lopez, Fernando and Bhatnagar, Rohit and Teo, Chee-Chong and Dubois, Charles, Implementing Supply Routing Optimization in a Make-to-Order Manufacturing Network (July 25, 2008). MIT Sloan Research Paper No. 4708-08. Available at SSRN: https://ssrn.com/abstract=1210842 or http://dx.doi.org/10.2139/ssrn.1210842