Inventory Management Explain Why Inventory Management Is Referred to as a Double-Edged

question 109

Essay

Inventory management
Explain why inventory management is referred to as a double-edged sword. What competing interests is management trying to balance in their management of inventories?

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Definitions:

Excess Cash

Funds that exceed the normal operational needs of a business, which may be used for investment or other purposes.

Earnings Per Share

A financial metric that calculates the portion of a company's profit allocated to each outstanding share of common stock, indicating the company's profitability.

Stock Repurchase

A transaction in which a company buys back its own shares from the market, often to increase the value of remaining shares by reducing the supply.