jk,
How can the inventory turns get below 3-4 days? I thought that DELL had the part in inventory from the 'red line' to the 'shipping door'. In that period of time, the system was 'assembled' and tested for 24 hours. Assuming that everything goes 'perfectly', and the system is assembled in 2 hours, tested for 24 hours, taken apart and boxed and moved to the 'shipping dock' another 30 minutes, the best that I can see is inventory for 26 hours, 30 minutes, which is more that 1 day.
Now for the COOL part, let's see ---- hummmmmmmm!
DELL had the unit in inventory for 1.1 days, they bill the customers credit card, and get the money, let's say $2000. Now the vendor, let's say is net 30, so DELL has to pay them in 28.9 days. So far so good!
So dell sticks the money in an interest bearing account that pays 3% per year (that is really small) and will earn $4.82 cents waiting to pay the vendor! If DELL does 100,000 units per month at only $2000 per unit, they will 'earn' $482,000 per month in interest. IMHO that is a nice chunk of change.
Have I missed something here?
Regards,
Ken |
