VISVESVARAYA TECHNOLOGICAL UNIVERSITY

“Jnana Sangama” Belagavi – 590010

Submitted as subject Assignment work,

ASSIGNMENT 1: Case study on: INTEL

ASSIGNMENT 2: Case study on: Dell’s Supply Chain
Management

BACHELOR OF ENGINEERING
IN
Computer Science and Engineering

Submitted By
Ajay N 4AL19CS005

Under the Guidance of

Mr. DEEPAK KOTHARI
Assistant Professor
Mechanical Engineering

DEPARTMENT OF COMPUTER SCIENCE AND ENGINEERING

ALVA’S INSTITUTE OF ENGINEERING & TECHNOLOGY
MOODBIDRI – 574 225, KARNATAKA
2021-2022
 ALVA’S INSTITUTE OF ENGINEERING & TECHNOLOGY
(A Unit of Alva’s Education Foundation, Moodbidri)
“Shobhavana”, Mijar, Moodbidri – 574 225, D.K.

DEPARTMENT OF COMPUTER SCIENCE AND ENGINEERING

CERTIFICATE

This is to certify that Mr. Ajay N 4AL19CS005 has submitted assignments on

“Intel Case Study and Case Study on: Dell’s Supply Chain Management” for
VI Semester B.E. in COMPUTER SCIENCE AND ENGINEERING during the
academic year 2021-22. The Assignment work has been approved as it satisfies
the academic requirements in respect of Assignment work prescribed for the
Bachelor of Engineering Degree.

Signature of Faulty
 Case Study on Intel

Assignment No 1:
Case Study On Intel
Introduction on Intel:

Intel Corp. is the world's largest manufacturer of central processing units and semiconductors. The
company is best known for CPUs based on its x86 architecture, which was created in the 1980s and
has been continuously modified, revised and modernized. Intel also offers graphics processing
units (GPU’s), networking accelerators, and communications and security products.[3].
Intel was founded in 1968 by a group of semiconductor engineers from Fairchild Semiconductor,
led by Gordon Moore and Robert Noyce. The company's name comes from shortening the
term integrated electronics. Although the company created its first CPU in 1971, Intel's primary
business was static random access memory (SRAM) and dynamic random access memory
(DRAM) chips. IBM used the Intel 8-bit chip 8088 processor when it created the PC in the 1980s,
and then moved to Intel's 16-bit 8086.[3].
Intel's top product is its CPU line for desktop and laptop computers. Primary products are sold
under the Core brand name, with the newest generation of Core i9 processors having up to 12
cores. Low-end processors are sold under the Celeron and Pentium brand names, with some
Celerons having single- and dual-core editions. In 2007, Intel introduced its vPro brand for remote
IT management and support. It comes as standard issue on every Intel motherboard for a server,
laptop and desktop computer. The vPro business technology enables IT departments to monitor,
update and troubleshoot multiple PCs without having to physically go to the hardware in question.
IT professionals can remotely troubleshoot a laptop in another office.[3].

Introduction on AMD:
Advanced Micro Devices, Inc. (AMD), global company that specializes in manufacturing
semiconductor devices used in computer processing. The company also produces flash memories,
graphics processors, motherboard chipsets, and a variety of components used in consumer
electronics goods. The company is a major supplier of microprocessor (computer chips). AMD is
based in Santa Clara, California.[2].

Department of Computer Science and Page 1

Engineering
 Case Study on Intel

Advanced Micro Devices was formally incorporated by Jerry Sanders, along with seven of his
colleagues from Fairchild Semiconductor, on May 1, 1969. Sanders, an electrical engineers who
was the director of marketing at Fairchild, had, like many Fairchild executives, grown frustrated
with the increasing lack of support, opportunity, and flexibility within the company. He later
decided to leave to start his own semiconductor company, following the footsteps of Robert Noyce
(developer of the first silicon integrated circuits at Fairchild in 1959 and Gordon Moore, who
together founded the semiconductor company Intel in July 1968.[2].
In September 1969, AMD moved from its temporary location in Santa Clare to Sunnyvale,
California. To immediately secure a customer base, AMD initially became a second source
supplier of microchips designed by Fairchild and National Semiconductor. AMD first focused on
producing logic chips. The company guaranteed quality control to United States Military Standard,
an advantage in the early computer industry since unreliability in microchips was a distinct
problem that customers – including computer manufacturers, the telecommunications industry, and
instrument manufacturers – wanted to avoid.[2].
In November 1969, the company manufactured its first product: the Am9300, a 4-bit MSI register,
which began selling in 1970. Also in 1970, AMD produced its first proprietary product, the
Am2501 logic counter, which was highly successful. Its best-selling product in 1971 was the
Am2505, the fastest multiplier available.[2].

1. Intel Vs AMD:

Industry analysts Mercury Research have released their year-end analysis of the x86 CPU market,
and there’s some fantastic news for AMD. The company has broken its own previously set record
for CPU market share, taking 25.6 percent of the market for the first time in 15 years. Though Intel
clearly still holds the lion’s share of the market, AMD is still making inroads and some of its
newfound success is attributed to the SoC chips it makes for the PlayStation 5 and Xbox Series X,
where Intel isn’t exactly a competitor.[1].
According to a summary of the Mercury Research report provided by Tom’s Hardware, AMD’s
current market share just barely squeaks past its previous high of 25.3 percent, which it had way
back in the heyday of 2006 with its Athlon chips. Ironically, via Google we found a similar report
from Mercury Research in 2007 noting that right after AMD achieved its 25 percent market share,

Department of Computer Science and Page 2

Engineering
 Case Study on Intel

Intel began chipping away at it with its fabled Core 2 Duo CPUs, which marked a huge turnaround
for Intel at the time. Despite AMD’s overall gains, it has continued to lose market share in both
desktop and notebook to Intel, while returning the favor in the server market where its Epyc CPUs
have been making major inroads into Intel’s turf for some time now. According to Mercury, AMD
now controls 10.7% of the server market, and has taken market share from Intel for 11 quarters in a
row now.[1][2].

Fig 1.1 represents about the market value of Intel Vs AMD

Mercury notes that AMD actually lost market share for desktop CPUs in 2021 due to the ongoing
shortages caused by the pandemic. At the same time Intel shipped the most CPUs in the final
quarter of 2021 with its Rocket Lake and Comet Lake chips, which are now being replaced in the
channel with Alder Lake. Mercury states Intel holds 83.8 percent of the desktop CPU market, with
AMD taking the remaining 16.2 percent. The pandemic has been very good for both AMD and
Intel’s bank accounts; both companies have reported excellent financial results.[1][2].
This new analysis comes on the heels of AMD reporting record revenue for 2021, which we noted
last week. It also tracks with industry analysts’ expectations that in the first half of 2022, AMD
will continue to loose market share to Intel in the notebook while AMD takes server market share
from Intel. This is due to the fact that the notebook world is a long time Intel stronghold, and its
Alder Lake chips are looking extremely competitive . Though AMD’s Ryzen 6000 mobile lineup is

Department of Computer Science and Page 3

Engineering
 Case Study on Intel

yet to launch, analysts believe it’s not likely to loosen Intel’s grasp on this rapidly growing market.
Things are going to be interesting in the server market as well in the latter part of 2022, with Intel
finally releasing its long-awaited Sapphire Rapids platform to take on AMD’s Genoa CPUs.[1].

2. References:

1.http://extremetech.com/computing/331530-amd-finishes-2021-with-record-cpu-market-
share#:~:text=Mercury states Intel holds 83.8,have reported excellent financial results.
2. https://en.wikipedia.org/wiki/Advanced_Micro_Devices
3.https://www.referenceforbusiness.com/history2/46/Intel-Corporation.html

Department of Computer Science and Page 4

Engineering
Case Study on Dell’s Supply Chain Management System

Assignment No 2:
Case Study on Dell’s Supply Chain Management System
Introduction :
Dell organization was built up in November 4, 1984. It is an American multinational data
innovation company situated in Round Rock, Texas, United States, that creates, offers and
backings PCs and related items and administrations. The organization is one of the biggest
innovative enterprises on the planet, utilizing more than 103,300 individuals around the world.
The name of its founder is Michael Dell. He was the most youthful CEO to direct an
organization to a Fortune 500 positioning. It generates an income of USD 63.07 billion yearly.
The company manufactures desktop computers, notebook computers, network servers, work
stations, storage products and customization of each product with the suppliers being Microsoft
for windows, Intel for microprocessors, Nvidia for graphics chips and Sony for the monitors.[1]

Fig 1.1 represents the Dell internal structure of supply chain

Department of Computer Science and Page 5

Engineering
Case Study on Dell’s Supply Chain Management System

As discussed in the case study, Dell keeps up a decent connection with the provider (supplier)
and help them to center on the innovative capacities to support initiative segments in the light
of the fact that in the realm of quick change in the innovation , research and development
expenses are roughly significantly higher for a company to keep up monopoly in their segment.
This is the reason that suppliers are asked to keep a lot sizes and stock as low as reasonably be
expected. Dell always focus on its customer research and use that research to help suppliers and
itself. As far as inventory details and new orders are concerned, Dell has build a web page,
where suppliers can view order details and can plan how much and when to provide the product
to dell based on actual demand of the consumer, which will decreases the bullwhip effect on
supplier end. The main motive of the dell is to work with supplier as a team and to reduce the
customer order line and to keep moving the supply chain. At that point with the joint efforts of
the whole provider`s, Dell can provide a large variety of alternatives to their clients and can
work to accomplish a quick throughput.[1]

1. First mover advantage:

If we see on the distribution side dell is mainly dependent on direct sales through internet, in
order to enhance income by offerings large varieties of desktops, notebooks and enterprises
products. All these are displayed on company’s websites and customers can directly purchase
from it. Even customers can place order from anywhere at any time. On comparing online and
retail dell computer purchase, online is cheaper because of the brick and mortar model. In dell
company whenever the new product is manufactured at the same time it is introduced over the
company`s website. Whereas the competing companies firstly produces the product and then
introduce the product after it reaches the retail store for selling. That is why Dell has an
advantage of introducing new product early in the market, said to be first mover advantage.[1]

2. DELL offers a better match to demand and supply:

Dell company has designed its manufacturing and assembling process in such a way that
product is manufactured in a couple of minutes. In this way earlier production can be postpone
and new product can be manufactured according to the order received and once new product is
manufactured, the postpone production again starts.[1]

Department of Computer Science and Page 6

Engineering
 Case Study on Dell’s Supply Chain Management System

As it offers modularity and tight scheduling. Whereas the other companies sell their products
through retailers and wholesalers and they find impossible to postpone production.[1]

3. Enjoy cash flow advantage :

The best part is that due to direct sales dell company eliminates the extra cost and margins lead by
retailers and wholesalers. Point to note that dell operates at negative working capital as it receive it
payments before it pays its suppliers and enjoy cash flow advantage .[1]
4. Drawback:
On the darker part, Dell company bear a high shipping cost then selling their product to retailers
and wholesalers. In this way dell has to bear shipping cost for each product when ordered by
customers, whereas other companies bear large shipment via tucks to warehouses and finally then
to retailers which is less expensive per unit.[1]

5. How has Dell use its direct sales model and build to order model to improve
its supply chain:
Dell Company’s path of action is to enhance technological capabilities to compete and enjoy
continuous leadership. Special Web pages are designed to encourage supplier’s to meet customer’s
demand by driving down lead times, lot sizes and inventories. Focussing on their distribution path,
Dell offers variety of it’s component, virtually through the internet leading to increase in their
revenue. Customer’s can choice their products based on their value choice. Customers can select
products during any time by recommending product configurations or customizing them and also
based on their purchase history and current needs.[1]

Direct Sales and build to order model are use by the Dell to build supply chain by synchronizing
the process from the starting to it’s completion. Dell produce products on the basis of their
customer’s order and execute accordingly after receiving the payment. No Products are produced
prior to customer’s order and based on the order procurement starts. So first step of the company si
to do research of customer’s preference and then based on it, a design is made which is displayed
on the web site. Integration of supplier’s is done through web page, which displays the orders that
are not yet executed, giving supplier’s the vital information to structure their plan based on the

Department of Computer Science and Page 7

Engineering
 Case Study on Dell’s Supply Chain Management System

requirement. These models have been proved exceptionally useful by drastically decreasing the
overall process timing to a couple of hours in comparison to months. Increase in cash flow is also
witnessed as the payment is received by the company before making the payment to their suppliers.

6. How has Dell exploited the direct sales model to improve operations
performance:

Dell produce products for the customers who have value for choice from different part of the
world. Internet played a key role in the success of the direct sales model. The Products with high
life cycle in an industry face difficulty to compete with dell, who enjoys advantage of early market.
Dell introduces the first model to customers in form of a new product. Supplier’s are directly
linked to the orders, so that they know the quantity of components to be manufactured and shipped.
The compression of supply chain give Dell a competitive advantage. Depreciation and write off of
inventories costs are reduced as Turnover rate of inventory is 60 times per year. Negative cash
conversion cycle is operated by Dell by using Direct sales model. Money is received by the
company in advance to pay to it’s supplier’s for the components. No stocks are kept and orders are
executed based on the customer’s choice. Sale Price and orders of the product are received by the
company, simultaneously, customer also receives the product accordingly to their preference
within a short span of time.[1][2]

7. What are the main disadvantages of Dell’s Direct Sales Model:

The disadvantage of Dell’s Direct Sales Model is the shipping cost and customer support service
cost,which the company has to bear after the sale is done. Dell bears the direct cost of shipping, as
it deals directly with the customer and where retailers have no role to play. Other companies
produce and send the products in bulk in comparison to Dell, who delivers small orders
individually to customers. Dell bear all the related transaction costs from receiving the order to it’s
execution and after sale services. Direct Sales Model enjoys advantage of cost on the side of
production but brings a disadvantage of cost on the side of support.[1][2]

Department of Computer Science and Page 8

Engineering
 Case Study on Dell’s Supply Chain Management System

8. References:
1. https://www.ukessays.com/essays/management/dell-supply-chain-study-2688.php

2. https://learn.marsdd.com/article/case-study-dell-distribution-and-supply-chain-innovation/

Department of Computer Science and Page 9

Engineering