Chapter 7, Problem 6C

JCPenney, a large retail company with many stores, has an inventory turnover of about 3.8 times. Dell Computer Corporation, an Internet mail-order company, has an inventory turnover of about 36.0. Dell achieves its high turnover through supply-chain management in a just-in-time operating environment. Why is inventory turnover important to companies like JCPenney and Dell? Why are comparisons among companies important? Are JCPenney and Dell a good match for comparison? Describe supply-chain management and a just-in-time operating environment. Why are they important to achieving a favorable inventory turnover?