This module's reading focuses on the operating cycle and the importance for merchandisers of managing inventories. Those inventories represent a significant use of working capital. Therefore, it is critical for business leaders to learn to manage and protect those inventories as effectively and efficiently as possible. The video for this discussion forum (linked in the Study Materials) will solidify your understanding of the key distinctions between the periodic inventory system and the perpetual inventory system. In Discussion Forum 3, post your response to the following discussion topic. Distinguish between the periodic and perpetual inventory system. Describe the advantages and disadvantages of both a periodic and perpetual system. Select your favorite merchandising company. Discuss which system you believe would be most beneficial for them and why. [MO 3.3, MO 3.4] Reply to at least two classmates' posts by the date indicated in the Course Calendar. Consider how your peers' choices of inventory systems compare with yours. Discuss whether you agree or disagree with their assessment, and try to add at least one consideration that they may not have examined in their posting