JCPenney, a large retail company with many stores, has

an inventory turnover of about 3.8 times. Dell Computer Corporation, an Internet

mail-order company, has an inventory turnover of about 36.0. Dell achieves its high

turnover through supply-chain management in a just-in-time operating environment.

Why is inventory turnover important to companies like JCPenney and Dell? Why are

comparisons among companies important? Are JCPenney and Dell a good match for

comparison? Describe supply-chain management and a just-in-time operating environ-

ment. Why are they important to achieving a favorable inventory turnover?