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Technology Stocks : Dell Technologies Inc.

DELL 114.44

-3.4%

Jan 30 9:30 AM EST

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To: rudedog who wrote (145331)	10/20/1999 12:03:00 PM
From: Mike Van Winkle	Read Replies (1) of 176388

rudedog re: Can anyone beat Dell's production costs? In the volume consumer business, lots of people beat DELL's production costs. This is a segment where batch production with lot buys pays off big time. Think Sony... That is one of the reasons that DELL has not gone into that business before - the BTO model and JIT planning just don't add much value and in many cases are a disadvantage. <<<<< I see things differently. The question misses the concept of the supplier (along with production, distribution, etc) to customer purchase process. Batch models sub-optimize one part of the process (reflected in the wording of the question). The answer to this type of question will always favor batch manufacturing. This is the mistake that Dell's competitors (with few exceptions) make. Cheers

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