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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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