Table:
| Commitments by Period | July 27, 2019 | July 28, 2018 |
| --- | --- | --- |
| Less than 1 year | $4,239 | $5,407 |
| 1 to 3 years | 728 | 710 |
| 3 to 5 years | — | 360 |
| Total | $4,967 | $6,477 |
Paragraphs:
The following table summarizes our purchase commitments with contract manufacturers and suppliers as of the respective period ends (in millions):
Purchase commitments with contract manufacturers and suppliers decreased by approximately 23% compared to the end of fiscal 2018. On a combined basis, inventories and purchase commitments with contract manufacturers and suppliers decreased by 24% compared with the end of fiscal 2018.
Inventory and supply chain management remain areas of focus as we balance the need to maintain supply chain flexibility to help ensure competitive lead times with the risk of inventory obsolescence because of rapidly changing technology and customer requirements. We believe the amount of our inventory and purchase commitments is appropriate for our revenue levels.
Question:
Why is inventory and supply chain management an area of focus for the company?
Answer: we balance the need to maintain supply chain flexibility to help ensure competitive lead times with the risk of inventory obsolescence because of rapidly changing technology and customer requirements.