Consider Dell whish is famouse
for its low inventory of parts (from Dell's suppliers) andfinished products (assembled at Dell's manufacturing facilities). If Dellmaintains low inventory of parts, and if Dell wants the suppliers to ship theparts soon after it places an order for them, does it mean that the suppliersshall maintain a high inventory of parts? And if the suppliers shall maintain ahigh inventory of parts, do the suppliers incur high holding costs? And if thesuppliers incur high holding costs, who will eventually pay for those costs?Dell? Or its suppliers? Or ultimately the customer? If you were Dell, discusshow you would ensure that the holding costs are actually reduced, not justtransferred