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Technology Stocks : Dell Technologies Inc.

DELL 141.01

+2.0%

3:15 PM EST

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To: Chuzzlewit who wrote (84947)	12/11/1998 3:51:00 PM
From: TigerPaw	of 176387

gross profit per foot of shelf space basis In this business it is productive manufacturing lines per square foot of factory space. With a build to order system Dell really has to be able to handle peak demands. People want quick delivery of their Dell system and to get it there must be enough lines to handle the peak business in a timely fashion. Building new factories is a costly business. It's a big expense while the factory is building and then at the time it is opened there is a period of oversupply of space until demand catches up. If Dell were to expand the demand for a low profit item it could easily constrain the ability to build to peak demand, then when orders were delayed it would be a blow to the expectations of the customer. TP

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