“Our goal, as soon as capacity increases if there's an adjustment in demand, we will build those inventory levels back up to be at more healthy levels.”

In context

“s the demand profile backlog and forecast actually reflect a sequential decline here in the fourth quarter? Rafael Lizardi: Yeah. So, I'll start and Dave, you want to chime in after that, but I think where you're going with that -- let me make a step back. Obviously, inventory levels are below desired levels. We're at 112 days, our target is 130-190 days. So clearly, we're well below where we want to be. And inside of that as you pointed out finished goods -- all finished goods, whether it's in consignment or at our product distribution centers, are the ones that are decreasing most. In fact, even though inventory -- total inventory levels stayed above flat slightly up second to third quarter, finished goods decreased and then whip and raw materials increased a little bit to offset that. Our goal, as soon as capacity increases if there's an adjustment in demand, we will build those inventory levels back up to be at more healthy levels. And given our business model, it's just a great bet, just given the low obsolescence of our inventory, the diversity of positions, diversity of products that we can afford. Not only we can afford, it makes sense for us to build that inventory, have it ready for the secular growth that we're confident will happen beyond that. And I think, you're going on consignment inventory, frankly, those tend to be pretty lean to begin with. That's how that process is designed, to just keep a couple weeks, so I wouldn't expect that, by itself, to build significantly. Pure consignment, where I would expect the build to happen at more of our product distribution centers. And that gives us more flexibility to then ship where the demand is most needed. Dave Pahl: Yeah. I think that's well said. I think j”