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Explain the difference between permanent and temporary working capital, and describe what a firm could do to minimize risk.

  • Explain the difference between permanent and temporary working capital, and describe what a firm could do to minimize risk.
  • Evaluate how small adjustments made to total cash conversion can have a large impact upon the financial health of a company.
  • Describe Economic Order Quantity (EOQ Using the EOQ formula and an example product for your business, determine the optimal quantity of the item to purchase that will help to minimize the annual total costs of keeping that item in inventory.
  • Describe what a Just-in-Time (JIT) inventory system is and its significance in reducing inventory costs.

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