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Finance: How is inventory managed for cash flow purposes? 3 Views


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How is inventory managed for cash flow purposes? In order to avoid the cost of carrying slow moving or out of favor inventory that would take space better used for more in demand inventory and increasing cash flow, managers may utilize just in time inventory management. This process reduces storage and insurance costs as well as the need to discount and dispense with unwanted inventory. The primary risk is being caught unable to meet demand for products not readily deliverable into inventory.

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