Inventory and cash flow problems

Inventory control is not the same as stock control ‐ it means control of each item that goes to make up the total inventory. In this exercise Keith Padden shows how his hypothetical range of crystal balls ‐ by which he means baked beans, soft drinks, instant coffee, or anything else ‐ can be rationalised. The result can be a release of working capital sufficient to make good the deficit in cash flow ‐ or to buy sites, build and fit out six 15,000 sq ft supermarkets.