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T: You are concerning about your products becoming outdated.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.