Cost of a dell computer reflects inventory costs

Assignment Help Operation Management

Reference no: EM131029802

What percentage of cost of a Dell computer reflects inventory costs? Assume Dell’s yearly inventory cost is 40 percent to account for the cost of capital for financing the inventory, the warehouse space, and the costs of obsolescence. In other words, Dell incurs a cost of $40 for a $100 component that is in the company’s inventory for one entire year. In 2001, Dell’s 10-k reports showed that the company had $400 million in inventory and COGS of $26,442 million.

Reference no: EM131029802

Questions Cloud

Manufacturing defect and breach of warranty : Sandra regularly took a particular drug for her acute migraines. After a few years, it was discovered that she had severe liver damage due to overuse of the drug. Sandra claimed that the labeling on the drug did not mention any such complications tho..

Describe opportunities-challenges in international marketing : Describe some opportunities and challenges in international marketing created by new advances in information technology and social media

Charge of public relations for small business firm : Imagine you are in charge of public relations for a small business firm or organization (what this business or organization does is up to you). Compose a short letter to a local business bureau explaining a new, somewhat controversial program or serv..

Select a type of scheduling discussed : Select a type of scheduling discussed in Chapter 15 and present an example. Discuss how the performance of an organization may be affected if this type of scheduling is done well or not done well.

Cost of a dell computer reflects inventory costs : What percentage of cost of a Dell computer reflects inventory costs? Assume Dell’s yearly inventory cost is 40 percent to account for the cost of capital for financing the inventory, the warehouse space, and the costs of obsolescence. In other words,..

Firm plans to begin prodction of a new small appliance : A firm plans to begin prodction of a new small appliance. The manager has three options: Option1: purchase the motors for the appliance from a vendor at $5 each; produce them in house using technology Awith an annual fixed cost of $50000 and a variab..

Organizations in implementing technological initiatives : Address three challenges faced by criminal justice organizations in implementing technological initiatives, such as cost/benefit factors, legal implications, and privacy issues

Transportation operations-types of capabilities-competencies : If you were given the task of outsourcing your company’s transportation operations, what types of capabilities and core competencies would you seek in a 3PL service provider? Think back to Case 12-1: Which of the items did you think Jetstream Aerospa..

Given the volatility and changes in business : Given the volatility and changes in business, how likely is it that a Compensation strategy can remain viable for any length of time? With the unpredictable fluctuations in business and compensations, it can be rather daunting for a compensation stra..

User Account

All Pages