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Working Capital and Inventory Trade-offs: A Decision Framework

Working Capital and Inventory Trade-offs: A Decision Framework

A decision framework for balancing service level against working capital trapped in inventory — beyond the slogan of 'less inventory is always better.'

What's Inside
  • The DIO-DSO-DPO framework and its connection to inventory decisions
  • Four common trade-off scenarios and how to decide in each
  • Why cutting inventory without financial analysis can backfire