L L BeanJoin now to read essay L L BeanCHAPTER SEVENDiscussion QuestionsWhat role does forecasting play in the supply chain of a build-to-order manufacturer such as Dell?Although Dell builds to order, they obtain PC components in anticipation of customer orders and therefore they rely on forecasting. This forecast is used to predict future demand, which determines the quantity of each component needed to assemble a PC and the plant capacity required to perform the assembly.
How could Dell use collaborative forecasting with its suppliers to improve its supply chain?Collaborative forecasting requires all supply chain partners to share information regarding parameters that might affect demand, such as the timing and magnitude of promotions. Dell could share with their components suppliers all of the promotions, e.g., holiday, back-to-school, etc., they have planned. These suppliers could, in turn, notify their suppliers of discrete components that a spike in demand is anticipated. These demand forecasts for end items determine the demand for components and coupled with knowledge of fabrication times, allows all members of the supply chain to provide the right quantity at the right time to their customers.
Dell is the largest retailer of computers, including the MacBook for $949 and the MacBook Pro 2013 for $799, but it also has a large retail presence in the physical office, home office and some of home-improvement/marketing roles. Dell has a full portfolio in various types of products, including PC, desktop and office computer. It has a global retail presence and a significant manufacturing footprint in Europe and North America. While Dell’s supply chain focus is on retail and industrial, Dell also has many other products and services with global market potential from hardware to healthcare, telecommunications, retail and consulting.
Dell was founded by Dennis W. Dell and his partner and chief technology officer, Greg W. Dell (who served with the former CEO) who was also the founder of Dell’s parent KPMG Solutions, Inc.
Dell, who was involved with C.I..S. and C-2, was co-founder and principal of Dell’s largest global business, Dell Computation Group.
With the arrival of the i-series laptop in 2010, Dell began planning out the iPS lineup and the initial lineup of PC, Mac, tablet and other computer products, including the iMacbook Pro. The iPS lineup debuted around September 2012 with the release of the Intel 7200 series. Dell took this design and released the iMac i, with an extended run of 2 new Mac mini and all of the iMacs after launch.
Beginning in February 2015, the entire Intel 7200 line arrived at retail stores in the U.S.
Dell continues to focus on providing the most powerful computer on the market today. With iMacs, the iMac has added a third dimension of gaming, including three-dimensional display capabilities, and improved graphics and memory. With the recent addition of the NVIDIA Pascal architecture on the iMac, the future of gaming is almost assured in the $1,599 range.
In early February, Dell shipped the first-generation iMac notebooks in its line, including the iMac X1 from EMC for $699 and also included the Intel Thunderbolt 3 (TDP/Max out to 4,500 Watts). In the first few weeks of March, Dell launched a limited-edition iMac X1, for only $349 and included a standard USB 3.0 port and Thunderbolt 3. It also included the iMac Retina display.
Dell products include both the 4K, 720p, and 480p graphics applications, which is currently included with all of consumer computers. More than 80% of Dell’s total desktop and notebook products launched in the United States since October 2012 in its line of notebooks and desktops are now available in Intel-branded notebooks, as well as in the 8 Series and Retina notebooks in the Dell Ultra Series.
Dell has expanded its line of products with numerous consumer products including the Dell Inspiron Black, Dell Inspiron Gold, Dell Inspiron Red
Dell is the largest retailer of computers, including the MacBook for $949 and the MacBook Pro 2013 for $799, but it also has a large retail presence in the physical office, home office and some of home-improvement/marketing roles. Dell has a full portfolio in various types of products, including PC, desktop and office computer. It has a global retail presence and a significant manufacturing footprint in Europe and North America. While Dell’s supply chain focus is on retail and industrial, Dell also has many other products and services with global market potential from hardware to healthcare, telecommunications, retail and consulting.
Dell was founded by Dennis W. Dell and his partner and chief technology officer, Greg W. Dell (who served with the former CEO) who was also the founder of Dell’s parent KPMG Solutions, Inc.
Dell, who was involved with C.I..S. and C-2, was co-founder and principal of Dell’s largest global business, Dell Computation Group.
With the arrival of the i-series laptop in 2010, Dell began planning out the iPS lineup and the initial lineup of PC, Mac, tablet and other computer products, including the iMacbook Pro. The iPS lineup debuted around September 2012 with the release of the Intel 7200 series. Dell took this design and released the iMac i, with an extended run of 2 new Mac mini and all of the iMacs after launch.
Beginning in February 2015, the entire Intel 7200 line arrived at retail stores in the U.S.
Dell continues to focus on providing the most powerful computer on the market today. With iMacs, the iMac has added a third dimension of gaming, including three-dimensional display capabilities, and improved graphics and memory. With the recent addition of the NVIDIA Pascal architecture on the iMac, the future of gaming is almost assured in the $1,599 range.
In early February, Dell shipped the first-generation iMac notebooks in its line, including the iMac X1 from EMC for $699 and also included the Intel Thunderbolt 3 (TDP/Max out to 4,500 Watts). In the first few weeks of March, Dell launched a limited-edition iMac X1, for only $349 and included a standard USB 3.0 port and Thunderbolt 3. It also included the iMac Retina display.
Dell products include both the 4K, 720p, and 480p graphics applications, which is currently included with all of consumer computers. More than 80% of Dell’s total desktop and notebook products launched in the United States since October 2012 in its line of notebooks and desktops are now available in Intel-branded notebooks, as well as in the 8 Series and Retina notebooks in the Dell Ultra Series.
Dell has expanded its line of products with numerous consumer products including the Dell Inspiron Black, Dell Inspiron Gold, Dell Inspiron Red
What role does forecasting play in the supply chain of a mail order firm such as LL Bean?LL Bean has historically operated almost exclusively in a make-to-stock mode and with very few exceptions, stocked products that did not go out of style as rapidly as many other clothing and accessory lines. A pre-worldwide web existence would have relied on communication with manufacturers about what products might be featured on the front of their catalog. The lead times involved in printing and distributing the catalog and producing the product line were such that elaborate planning and forecasting tools were not required. A quick visit to the web site demonstrates that this is changing; the featured products on the web site can be changed daily or programmed to rotate each time the web page is refreshed. LL Bean and their supply chain, including the logistics component, are well aware of the demand forecast and can all receive sales data as orders are placed. LL Bean probably has an extranet to communicate sales data with suppliers and allows customers to create accounts to manage purchases, wish lists, and track orders.
What systematic and random components would you expect in demand for chocolates?Systematic components are level, the current deseasonalized demand; trend, the rate of growth or decline in demand for the next period; and seasonality, the predictable seasonal fluctuations in demand. The demand for chocolates is probably highly seasonal, one would expect demand to spike for certain holidays such as Valentines Day, Halloween, and Christmas.
Why should a manager be suspicious if a forecaster claims to forecast historical demand without any forecast error?The primary difficulty with such a claim is that forecasts are always wrong, hence, an estimate of error should be provided with the forecast. Given a set of data, it is possible to create a forecasting model that is 100% accurate,