Identify key reasons organizations need to hold inventory
Not what you're looking for?
Identify key reasons that organizations may need to hold inventories. What factors may lead an organization to change the level of inventories that it holds? How could such a decision affect the other elements of working capital?You should choose examples from your own experience or find appropriate cases on the Web that you can discuss.
Purchase this Solution
Solution Summary
Your tutorial is 332 words and discusses the issues surrounding holding inventory from a picture frame manufacturer's viewpoint.
Solution Preview
When I was working for a picture frame manufacturing company, the key reasons to hold inventory were either insurance against disruption in obtaining more items or anticipated sales.
Some of the frames were made of unique hardwoods that we sourced from the far east and so it took six weeks on the boat to get new supplies. And then the wood needed to dry out and "settle" to the moisture and heat conditions of the new location before cutting into frames. So, we held inventory due to the long ...
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
Recent Feedback
- "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
- "Thank, this is more clear to me now."
- "Awesome job! "
- "ty"
- "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Basics of corporate finance
These questions will test you on your knowledge of finance.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.