Jit-Dell Computers Essay Example

Dell Computers has embraced the use of just-in-time (JIT) inventory method to effectively handle its stock. The goal is to minimize waste and decrease the amount of inventory on hand. Before implementing JIT, Dell faced challenges in managing their budget. However, after incorporating this approach into their operations, the company experienced significant improvements in inventory turnover and reduced storage time for their products. This is crucial because computers tend to lose value quickly when they are not being sold, resulting in substantial depreciation.

Dell achieved success and improvements by shifting its focus to building customized orders and selling directly to the customer. The company reduced costs associated with inventory storage by only carrying supplies needed for specific orders. Implementing Just-in-Time (JIT) inventory management eliminated carrying costs, enabling Dell to maintain low overhead costs by minimizing inventory. Consequently, Dell'