what effect has inventory management (as separate from increasing sales) on cash?  Why/how can inventory management be critical?   Investigate the costs of owning inventory.

how to calculate average inventory and average inventory value

What is inventory management and why are they important for society? How can inventory management be applied to the real world?

ABX manufactures large freezers for grocery stores. ABX is presently trying to plan its production and inventory levels for the next six months. Because of seasonal fluctuations in utility and raw materials costs, the per unit cost of producing freezers varies from month to month-as does the demand for the products. Production capacity also varies from month to month due to differences in the number of working days, vacations, and scheduled maintenance and training. The following table summarizes the monthly production costs, demands, and production capacity that ABX's management expects to face over the next 6 months. Unit Demanded Month Unit Production Cost $225 Maximum Production 1 1,200 4,000 2 $250 3,000 3,200 3 $230 5,000 3,800 5 $275 $290 6,000 6 5,500 3,500 3,600 4,000 $260 3,000 The warehouse can hold a maximum of 5,500 units in inventory at the end of each month. Management wants to keep at least 1,500 units in inventory as safety stock to balance variations in demand. To…