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Improving The Flexibility Of The Desktop Pc Supply Chain Case Study

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Running Head: IMPROVING THE FLEXIBILITY OF DESKTOP PC SUPPLY CHAIN 1 Improving the Flexibility of Desktop Pc Supply Chain Institution Affiliation Date: IMPROVING THE FLEXIBILITY OF DESKTOP PC SUPPLY CHAIN 2 1 In this case, there are several facts that support the arguments regarding LEVEL 5 AN LEVEL 6 OF manufacturing. In essence, it is clear the L5 tend to incur higher manufacturing costs as compared to L6. The manufacturing cost can be related to a number of factors present in L5 and which have been done away with at a higher level. Manufacturing in level 6 includes the integration of both the chassis and the motherboard offshore which is then shipped by water to the dell facility. However, L5 involves integration in the Dell facility meaning that chassis and chassis are shipped in different consignment and Dell has to employ production cost in integrating both (Lee and Sturgeon, 2015). L6 does away with the cost of moving motherboard by air as well as reducing costs such as packaging and so many logistical costs which are available in L5. It means therefore in L5, dell products must incur integration cost inside the dell facility this involves the cost of onshore labor for integration which is not incurred in L6. The other is the air freighting costs of the motherboard as extra packaging of the same given that it is off the chassis. The other is in regard to logistical costs which would be avoided if both were integrated. Cost for L6 is integration in China which does ...
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