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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Francis Chow who wrote (59292)	7/4/1998 7:30:00 AM
From: TTOSBT	Read Replies (1) \| Respond to of 186894

Re: "In the old days when the boxmakers carried up to one month (or more)inventory Intel faced a less variable demand profile - it was the boxmaker's inventory which took care of market variability." My understanding is DELL has a built-to-order low-inventory Intel-only type channel. They are very very successful with this as most everyone knows and should assume that so is Intel. My question on the subject is: How does Intel/Dell do it and why is it now a problem for Intel with other OEM's ? Or is JIT different then what Dell is doing? TTOSBT

To: Francis Chow who wrote (59292)	7/4/1998 9:13:00 AM
From: John Carragher	Respond to of 186894

My thought was intc builds based on purchase commitments. If the box folks have an increase in demand( over a certain allowable %) they will pay a premium for the intc product. intc has to build production on estimates and then an inventory for changes in demand, supplier problems or production problems. However, just like the air line industry, their price structure could change based on lead times. I was suggesting a premium for less than lead time orders.... intc would ship these from reserve inventory. I also think any increase in costs of maintaining inventory will be passed along where possible... Francis thanks for the bringing up the subject I find it very interesting. I hope we hear from more people on this matter. John