"But the issue isn't inventory levels, it is how quickly they might rise, even from a low level, if sales collapse."

These tools can be used to lower costs, keep inventory levels at a minimum and speed up lead times.

Most Internet retailers, she said, have tended to keep inventory levels low.

In July, the company predicted inventory levels would not grow significantly from that level.

Why did the company let inventory levels get so high?

And our inventory levels are pretty low as it is.

"Those are big increases, but they're really just returning to more normal inventory levels," she said.

The main benefits from making these changes are improved performance in delivering on time and lower inventory levels.

When the inventory level reaches 350 units an order should be placed for material.

Intel's inventory levels grew by $427 million in the quarter, the company said.