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Technology Stocks : DELL Bear Thread -- Ignore unavailable to you. Want to Upgrade?

To: rudedog who wrote (1784)	9/2/1998 6:08:00 AM
From: Geoff Nunn	Read Replies (1) \| Respond to of 2578

Rudedog, you make an interesting point. The question is, does Intel prefer to sell to a customer like Dell, which wants to receive components on a frequent, continuous basis, or someone like CPQ, which buys components less frequently in large discrete "lumps"? If Intel processors come off the assembly line one at a time, why should Intel prefer to deal with a customer like CPQ? I would think CPQ's lumpy order stream would be more costly to accommodate, requiring Intel to hold greater inventory. If you are knowledgeable about Intel's production process as I suspect you are, please explain why Intel would prefer dealing with CPQ's order stream rather than Dell's. One other thing, Intel doesn't ship only to Dell or CPQ but to many different customers. Intel must maintain an inventory large enough to accommodate all of them. That being the case, why is it better for Intel when any particular customer orders components in large batches? I should think Dell's smaller, more frequent, order pattern would permit Intel to carry lower inventory. Geoff