Dell requires that each customer order a computer and pay for it in advance. What is their inventory strategy?

Question

Quizplus · Accepted Answer

Dell's strategy is a near-zero inventory strategy, also known as a just-in-time strategy. This means that they hold very little inventory and order components and parts only when they are needed to fulfill a customer order. By requiring payment in advance, Dell can avoid holding excess inventory and the associated costs of carrying inventory.

Dell Requires That Each Customer Order a Computer and Pay