DSG, Circuit City, and Best Buy are competitors in the global marketplace. Access DSGs annual report (www.DSGiplc.com)
Question:
(£ millions) Current Year One Year Prior Two Years Prior
Inventories . . . . . . . . . £1,030 £873 £811
Required
1. Determine the change in DSG’s inventories for the last two years. Then identify the impact on net resources generated by operating activities (increase or decrease) for changes in inventory levels (increase or decrease) for DSG for the last two years.
2. Would a move to a JIT system likely impact DSG more than it would Best Buy or Circuit City? Explain.
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1 Actual inventory changes and operating net resources effects follow DSG millions Current Year One ...View the full answer
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