Problem 1. Should the minimum cash reserves be a fixed number in all circumstances?
Problem 2. What factors would determine the cash reserves?
Problem 3. How can changing the manufacturing process assist in achieving the balance between cash and profits? What are some trade-offs involved in this process?
Problem 4. With a different MOQ, how will the inventory conversion period (the time between the receipt of raw materials and production of finished goods) impact the decision to borrow and/or the decision to change the credit period for customer?
Problem 5. What other factors of production does MOQ impact?
Problem 6. When does it make sense for the company to have higher liquidity rather than higher returns as an investment objective?
Problem 7. If the company's competitive position is weak, what working capital management strategy should it adopt?
Problem 8. In what circumstances does it make sense for a company to maintain higher inventory levels?
Problem 9. How would industry norms impact your decisions about supplier credit and customer credit?