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WCR lower cost of storage

Inventory is an important part of WCR estimation. It is a current asset, which depletes over period of time. Also, it requires creation of facility, which would help in storing the inventory and estimate the associated cost of maintaining and transporting it. The estimation of an ideal level of inventory which would keep production lines working while ensuring that not much cash locked up is very necessary. Its estimation would lower capital requirement, lower wastage level, increase profitability improve efficiency and maintain high cash and cash equivalent position.

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