Discussion area and inventory management

Make sure you post your initial response to the Discussion Area by the due date assigned. To support your work, use your course and text readings and also use outside sources. As in all assignments, cite your sources in your work and provide references for the citations in APA format. Start reviewing and responding to the postings of your classmates as early in the week as possible. Respond to at least two of your classmates. Participate in the discussion by asking a question, providing a statement of clarification, providing a point of view with a rationale, challenging an aspect of the discussion, or indicating a relationship between two or more lines of reasoning in the discussion. Complete your participation for this assignment by the end of the week.

Complete the following discussions: Inventory management is critical to success in the simulation. With respect to your team, discuss how you decide to balance the risk of stock outs against the costs of maintaining excess inventory. Every week, you have to consider the cash flow of your firm. This short-term financial consideration often creates serious difficulties for firms in the footwear industry. Looking at your industry to date, consider the following questions: Why do firms have trouble managing their cash flow? What events cause a cash flow crisis in the simulation? How does a short-term cash flow crisis impact a firm’s competitive strategy? How does a short-term cash flow crisis spiral into bankruptcy for some firms?

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