Entrepreneurial Small Business 4th Edition by Jerome Katz ,Richard Green

Exercise 15

Choose a local business in the industry that you would like to own. Visit the business that you chose, walk about to observe the amounts and types of inventory on display. Interview the owner or manager. Determine the approximate value of inventory kept on hand. Find out the average time that any single item stays in inventory before being sold. Also find out the minimum order quantities and delivery times of inventory. Use this information to estimate the amount of working capital necessary to maintain inventory. Report to your class.