Friday, October 10, 2008

Inventory

Inventory is good because it help to reduce the production cycle. But it is one of the most dificult asset to manage because:-
- very fast it become obsolete
- cash tie to inventory
- require storage
- worse case if you manufacture then it part of your wip and consolidation p&l need to eliminate the Inter-Company Profit.

My advice - Continue to look at turn and prepare aging by part number.

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