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Many organizations have difficulties controlling their inventory. Reflecting on your present or past jobs, think about practices that could cause problems controlling the organization’s inventory. Then explain one of these practices, why it was or could be considered a problem with controlling inventory, and what could be changed to keep this practice from being a problem.
Consider the dilemma you face as a leader and chief financial officer of a company that is struggling to maintain a positive cash flow, even though the company is reporting a substantial positive net income. Maybe the problem is so severe that there is often insufficient cash to pay ordinary business expenses, like utilities, salaries, and payments to suppliers. Assume that you have been asked to communicate to your Stakeholders about your company’s year, in retrospect, as well as your vision for the company’s future.
For this discussion, write a memo that expresses your insights about past experience and present prospects for the company. Note that the challenge of the assignment is to keep your integrity intact, while putting a positive spin on the situation, as much as is reasonably possible. How can you envision the situation turning into a success story?