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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 229.12

-0.2%

Nov 26 3:59 PM EST

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To: jacek pietrzykowski who wrote (1980)	3/5/1998 4:14:00 PM
From: BelowTheCrowd	Read Replies (1) of 164684

It's known as the danger of NOT carrying inventory. When supplies for something are tight, the guy who depends on just-in-time inventory gets creamed because he can't deliver. This happens every time a musician or writer dies and their CDs or books get snapped up. And every time a book comes out which is related to a popular movie/TV show/news event. Of course, these are also the products which can command high margins due to the scarcity, and also the ones which tend to "expire" worthless a few weeks later when the mass hysteria dies down and you consider that the dead singer or writer wasn't really somebody whose work you liked much, or that you had better things to do than read the book version of a movie you've already seen, or that maybe it doesn't seem so important right now to know everything possible about Anthrax and other biological weapons. You get the point. No inventory reduces cost. Also risks permanent loss of customers when you misjudge and can't deliver what they want when they want it. mg

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