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J.C Penny, a large retail company, has an inventory turnover of 3.4 times .Dell Corporation, a well-known computer manufacture, has an inventory turnover of 75.0 Dell achieves its high turnover through supply-chain management in a just-in-time environment.
1. Why is inventory turnover important to companies like J.C. Penny and Dell?
2. Why are comparisons among companies important?
3. Are J.C. Penny and Dell a good match for comparison?
4. Describe supply-chain management and a just-in-time operating environment. Why are they important to achieving a favorable inventory turnover?
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