This represents the surplus amount of financing that

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Unformatted text preview: e seasonal peak need ($1,125,000) to get $888,750 ($1,125,000 $135,000 $101,250). This represents the surplus amount of financing that on average could be invested in short-term vehicles that earn a 5% annual return. CHAPTER 14 FOCUS ON e-FINANCE Working Capital and Current Assets Management The Strongest Links Dell Computer has long been recognized for its pioneering supply chain and e-commerce strategies. The direct-to-customer PC company knows how to use technology to manage all aspects of its business, from back-office systems to online ordering. By integrating its various systems, the company continues to provide quality products at low costs, as well as excellent customer service. Its customer relationship management software knows which computers its customers order. Feeding those data to the production planning systems tells manufacturing what components it needs to fill the orders, and supply chain programs send parts forecasts to vendors. Dell requires key suppliers to be linked over the Web so that the proces...
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