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Cash Conversion Cycle :

For Trading concern:

CASH

STOCK
DEBTORS
OF
/ BR GOODS

SALES

For manufacturing concerns:

CASH

RAW
DEBTORS / MATERIALS
BR
STOCK

WORK -IN
SALES
PROGRESS

FINISHED
GOODS

Inventory Control:

Inventory means stock of raw materials, semi- finished goods, spare parts and finished goods. Some key
terms for inventory control are SKU ( Stock Keeping Unit) and Motley Crowd.

Various aspects to be considered in the process of inventory control are:

Space, Value of the inventory , Lead time, Seasonality of supply, Uncertain demand, Safety aspects etc.