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The following questions are related to Dell's competitive advantage A good way to look at the extent of Dell's working capital advantage over its competitors
The following questions are related to Dell's competitive advantage A good way to look at the extent of Dell's working capital advantage over its competitors can be assessed using data contained in Table A of the case on DI for Dell and its competitors. In 1994 and 1995, Dell's DI was about half the level of its competitors. In January 1996, for example, Dell had inventory to cover 32 days of sales while Compaq Computer had inventory to cover 73 days of sales. One way for you to quantify Dell's competitive advantage is to calculate the increase in inventory Dell would have needed if it operated at Compaq's DI level. So, let's calculate the numbers. What is the Dell's inventory in 1995, given its COGS of $2,737, and DI of 32, using 365 days in a year
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