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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: WBC who wrote (56912)	8/7/1998 9:34:00 AM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

WBC, if you look at Dell's inventory, it is measured in terms of around 7 or 8 days. If component purchasing were based on quarterly sales projections you would expect raw materials inventories to be around 7 to 8 weeks. Remember, we are talking purchasing, not forecasted utilization. Of course JIT relies on forecasting, because suppliers need to know what their run rates have to be, but the actual purchase is demand driven. Compaq's historic cogs advantage over Dell is not conjecture. Look at the comparative income statements of say a year ago and Compaq's cost advantage will be apparent. TTFN, CTC