[Finance Strategy] - Inventory Management
The next article we share in the "Financial strategy" series is inventory management.
We know many successful businesses in the world due to effective inventory management. The most typical are Toyota and Apple.
Do we know how many were the average inventory day of Apple in 1998?
That is 6 days, it is understood that from the time of purchasing raw materials, manufacturing, reaching the customers is 6 days.
And CEO Tim Cook once said that "Inventory is the source of crime"
But how to manage inventory effectively and devise strategies is not easy at all
According to STEVEN M. BRAGG, three factors should be considered when making decisions regarding inventories that we share in this document.
In my personal opinion based on Apple's specific case:
There are many indicators to offer optimal inventory calculation method. But it is clear that there is one key decisive indicator for the remaining indicators, which is the revenue forecast. If the revenue forecast is inaccurate, it will affect the remaining indicators.
And Apple has accurately forecast its revenues for the next 150 days and is the cornerstone of its optimal inventory management.
We also donate the attached excel file for safe inventory calculation by users.
If you need it, please inbox to me