You work as a logistics manager for an industrial company in California that manufactures sonar equipment to fishing boats. Your boss has indicated that the capital tied up in both raw material and finished goods warehouse, is far too high compared to competing businesses. Your boss asks you to put in action within 1 year will give noticeably less capital tied up but at the same service as before.
Task:
Describe the logistical structural assumptions relating to capital and what measures you will implement. Explain the manner in which your actions will reduce capital tied up in raw material respective stocks of finished goods at the same service as before.