Question No$.5.-$ If you concluded to suggest new buffer stock levels would these changes improve the company$$s cash

flow position $?$ If so$,$ by how much $?$

CONCLUSIONS AND OTHER RECOMMENDATIONS $(25$ points$)$

$$ Question No$.6.-$ What purchasing practice could you suggest changing, regardless of buffer stock levels, which could have

an even greater impact on cash flow $?$

Compare initial Total Inventory in Dollars with Total Inventory in Dollars using suggested SS levels

Tip Compare initial Total Inventory in Dollars with Total Inventory in Dollars using suggested SS levels

Tip

Difference in Cash Position $=\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Explain: $\_\_\_\_$period expressed in days. $($Ex: On $15\%$ of the orders the vendor for part $1$A$1$ is late and recovers in average of $3$ days after due date$)$

CONCLUSIONS AND OTHER RECOMMENDATIONS $(25$ points$)$

Question No$.5.-$ If you concluded to suggest new buffer stock levels would these changes improve the company's cash

flow position? If so$,$ by how much $?$

Difference in Cash Position $=$

Compare initial Total Inventory in Dollars with Total Inventory in Dollars using suggested SS levels

Question No$.6.-$ What purchasing practice could you suggest changing, regardless of buffer stock levels, which could have

an even greater impact on cash flow $?$

Tip

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