With a different moq how will the inventory conversion

Question

1. Should the minimum cash reserves be a fixed number in all circumstances?

2. What factors would determine the cash reserves?

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?

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?

5. What other factors of production does MOQ impact?

6. When does it make sense for the company to have higher liquidity rather than higher returns as an investment objective?

7. If the company's competitive position is weak, what working capital management strategy should it adopt?

8. In what circumstances does it make sense for a company to maintain higher inventory levels?

9. How would industry norms impact your decisions about supplier credit and customer credit?

Answer 1

For the following, answer all the questions written below in Times New Roman font, size 12, having margin of 1.2 inch from all sides and by following the APA style in the citation. Q1. Should the minimum cash reserves be the fixed number in all the conditions? Q2. What factors would find out the cash reserves? Q3. Illustrate how can changing the manufacturing procedure assist in accomplishing the balance between the cash and profits? What is some trade-offs comprised in this process? Q4. By using a different MOQ, illustrate how will the inventory conversion period (that is, the time between the receipt of raw materials and production of finished goods) influence the decision to borrow and/or the decision to change the credit period for customer? Q5. Illustrate what other factors of production does MOQ impact? Q6. Whenever the company's competitive position is feeble, then what working capital management strategy must it adopt?