T: What exactly happens at your hubs?
S: First, our customer places an order; second, the computer is assembled.
T: The hub is doing the assembly.
S: That's right. Third, the computer is placed in inventory.
T: It is not in inventory very long, is it?
S: No, just inventory gets on the truck.
T: So fourth the computer is taken out of inventory and sent to the customer.
S: All within five days, we work fast.
T: So inventory is kept at the hub.
S: Yes. Although we want to keep inventory at the minimum.
T: But if you have large inventory of computers, you have more control.
S: More control and more expense.
T: Many companies operate efficiently with large inventories.
S: I bet they aren’t in the high-tech industry.
T: Do you mean that high-tech industries like computers change too quickly.
S: Exactly, I don't want inventory of last year's products.
T: Old inventory won't sell.
S: Not in this industry, our inventory never gathers dust.
T: You are concerning about your products becoming outdated.
S: That's right, this industry is changing so quickly, it is hard to keep up with them.
T: The technology is changing, and that leads to new developments.
S: New products are developed constantly. And computers on the shelf become vergly obsolete.
T: Customers want them newest and fastest.
S: No problem, but meanwhile, our inventory is losing one percent of its value every week.