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Technology Stocks : Dell Technologies Inc.
DELL 122.55+4.4%Nov 21 9:30 AM EST
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To: K. M. Strickler who wrote (57222)8/9/1998 5:36:00 PM
From: jbn3  Read Replies (1) of 176387
 
DELL overload potential

Ken,

re your It seems to me that is DELL becomes too successful, their BTO-JIT process can 'overload', I realize that the Metric 12 plant and other facilities will add to their capacity, but a government order for 1mln systems would definitely be a bump in the road.

You may be laboring under a misconception, as I don't think the government orders that way. In very general terms, it works like this: Each bureaucracy receives a budget, based upon a projection it submitted. When budget monies are received, the bureaucracy then breaks it down and allocates those funds to its subordinate offices, based upon the requirements they originally submitted. This process is continued until it reaches the lowest organizational element with a discretionary budget. These low-echelon offices can then use the funds to satisfy their requirements. This results in a myriad of smaller lot orders trickling in, rather than one large central order.

DELLish, 3
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