Question
At least part of Dells 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 Dells 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 Dells inventory policies, but they 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 Dells advantage to have such a short inventory period? If doing this is valuable, why dont all other PC manufacturers switch to Dells approach?
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