Question
At least part of Dell's corporate profits can be traced to its inventory management. Using just-in-time inventory, Dell typically maintains an inventory of three to
At least part of Dell's corporate profits can be traced to its inventory management. Using just-in-time inventory, Dell typically maintains an inventory of three to four days' sales. Competitors such as Hewlett-Packard and IBM have attempted to match Dell's inventory policies, but lag far behind. In an industry where the price of PC components continues to decline, Dell clearly has a competitive advantage. Why would you say that it is to Dell's advantage to have such a short inventory period? If doing this is valuable, why don't all other PC manufacturers switch to Dell's approach?
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