VALUATION CONCEPTS AND

METHODS
WORKING CAPITAL MANAGEMENT

Submitted by:
Acierto, Jhon Reymark
Alabata, Jharzel
Beltran, Millet
Dalagan, Alaina Chriselle
Gabion, Marafe
Licuidne, Paul John
Macabata, Jess-Cyr
Mariano, Abegail
Mariano, Jhiezel
Noblejas, Erika
BSA 1-13

Submitted to:
Prof. Evelyn Topacio
 WORKING CAPITAL MANAGEMENT

I. Definition, Significance, and Function:

A. Working Capital Management

Definition:
Working capital management is a business strategy designed to ensure that a company
operates efficiently by monitoring and using its current assets and liabilities to the best effect.
The primary purpose of working capital management is to enable the company to maintain
sufficient cash flow to meet its short-term operating costs and short-term debt obligations.
A company's working capital is made up of its current assets minus its current liabilities.
Current assets include anything that can be easily converted into cash within 12 months. These
are the company's highly liquid assets. Current assets include cash, accounts receivable,
inventory, and short-term investments.
Working Capital Management requires monitoring a company's assets and liabilities to
maintain sufficient cash flow. The strategy involves tracking three ratios namely: the collection
ratio, the working capital ratio, and the inventory ratio. Monitoring the mentioned ratios at
optimal levels ensures efficient working capital management.

TYPES OF WORKING CAPITAL MANAGEMENT RATIO

• WORKING CAPITAL RATIO - The working capital ratio or current ratio is calculated
as current assets divided by current liabilities. It is a key indicator of a company's
financial health as it demonstrates its ability to meet its short-term financial obligations.
• COLLECTION RATIO - The collection ratio is a measure of how efficiently a
company manages its accounts receivables. The collection ratio is calculated as the
product of the number of days in an accounting period multiplied by the average amount
of outstanding accounts receivables divided by the total amount of net credit sales during
the accounting period.
• INVENTORY TURNOVER RATIO - The final element of working capital
management is inventory management. To operate with maximum efficiency and
maintain a comfortably high level of working capital, a company must keep sufficient
inventory on hand to meet customers' needs while avoiding unnecessary inventory that
ties up working capital.
Significance:
The working capital is important because it is a proper way of handling working capital,
wherein working capital is a daily necessity for businesses, as they require a regular amount of
cash to make routine payments, cover unexpected costs, and purchase basic materials used in the
production of goods. When a company does not have enough working capital to cover its
obligations, financial insolvency can result and lead to legal troubles, liquidation of assets, and
potential bankruptcy.
Working capital management has an important role to play in the success of any business
enterprise. Over 75% of companies that are running at loss or struggling financially would be
profitable and liquid if were more disposed to the knowledge and practice of efficient working
capital management. The working capital management system helps in ensuring that tied down
capital that could otherwise be put to productive uses are released. Many finance professionals
and business experts often ignore the importance of this management. They usually do not go the
extra mile in striving for optimum utilization of resources tied to working capital just because
they only look at the work involved in carrying out proper working capital management exercise.
Efficient working capital management helps maintain smooth operations and can also
help to improve the company's earnings and profitability. Management of working capital
includes inventory management and management of accounts receivables and accounts payables.
The main objectives of working capital management include maintaining the working capital
operating cycle and ensuring its ordered operation, minimizing the cost of capital spent on the
working capital, and maximizing the return on current asset investments.
Working capital management is an effective management technique tool that has the
potential of guaranteeing long-term success. Indices such as: ‘cash management’, ‘accounts
receivable management’, ‘accounts payable management’, ‘marketable securities management’,
and ‘accruals management’, are crucial responsibilities of financial managers that require
constant supervision from the CFO (Chief Financial Officer).
Additionally, working capital management helps provide better insight into the true
financial state of a company. Through working capitals ratios, analysts and financial experts can
gain a better understanding of a business. The working capital management affords the business
the opportunity of taking a closer look at all of its financial indices.
Function
Listed below are the key functions of working capital management:
1. Expansion of investment portfolio. Funds released through sound working capital
management practices act as a cheap source of finance that can be used for expansion of existing
projects or for investment in new spheres of investment.
2. Increase profitability. Increasing profitability is one of the main objectives of engaging in
working capital management. One of the ways of increasing profitability through adequate
working capital management is in saving of financial cost that would have otherwise been
incurred but for managing short-term assets and liabilities.
3. Ensures the availability of sufficient resources. Through stock management which is a
component of working capital management, a business is able to ensure that resources are
sufficient at all times. Optimal stock level, for instance, is determined using some models outside
the scope of this article.
4. Solidifies the going concern status of a company. In business, it is very common to find a
profitable company goes out of business if it fails to meet up with the short-term financial needs
of the business. Businesses need to satisfy its short term and medium term obligations in order to
be in business and still remain competitive.
5. Improves overall efficiency of a company. The overall operational excellence of a company
would be greatly improved by an effective working capital management system. Where this
system is in place, finances are managed in such a way that it poses no hindrance or obstacle to
any aspect of the entity.
6. Helps a company avoid overtrading. Overtrading is one of the fastest ways to business
failure. One main characteristic of overtrading is mismatching assets and finances. The business
goes beyond set financial goals and objectives, and in the long run, it meets with ruin. Some
trends signaling overtrading will include uncontrolled, out of proportion business expansion.
7. Maintain good relationship with suppliers and other creditors. Where a business engages in
the proper management of its working capital and other financial indices, Trade creditors and
other non-trade creditors are poised to continue doing business with it. Their knowledge of the
existence of this system goes a long way to boost their confidence in the business and their
dealings.
8. Avoid underutilization of resources. While we condemn overtrading and tag it as a negative
impact on the functionality of the business, we must also reiterate that under trading can cost a
business a fortune in an unearned profit. Through proper management of working capital, a
company can ensure that there are no idle resources.
9. Allocation of resources. Management of working capital is essential in the allocation of
resources. It assists the business management incorrectly allocating the right resources to
appropriate quarters. Applying the ratios revealed upon the utilization of the management
system, as well as all other necessary analysis, areas with surplus resources and the shortage of
resources are identified and followed swiftly with appropriate even distribution of resources to
all.
Managing working capital is synonymous with efficiently managing other resources in
the business. Other financial indices are considered such as the ratios of turnover, the ration of
the collection, the ration of key performance. All of these can only be effectively achieved by a
standard, efficient and state of the art management of working capital.
 B. Cash Management
Definition:
Cash management is the process of collecting and managing cash flows. Cash
management can be important for both individuals and companies. In business, it is a ke
component of a company's financial stability. For individuals, cash is also essential for financial
stability while also usually considered as part of a total wealth portfolio.
Individuals and businesses have a wide range of offerings available across the financial
marketplace to help with all types of cash management needs. Banks are typically a primary
financial service provider for the custody of cash assets. There are also many different cash
management solutions for individuals and businesses seeking to obtain the best return on cash
assets or the most efficient use of cash comprehensively.
Cash is the primary asset individuals and companies use to pay their obligations on a
regular basis. In business, companies have a multitude of cash inflows and outflows that must be
prudently managed in order to meet payment obligations, plan for future payments, and maintain
adequate business stability. For individuals, maintaining cash balances while also earning a
return on idle cash are usually top concerns.
In corporate cash management, also often known as treasury management, business
managers, corporate treasurers, and chief financial officers are typically the main individuals
responsible for overall cash management strategies, cash related responsibilities, and stability
analysis. Many companies may outsource part or all of their cash management responsibilities to
different service providers. Regardless, there are several key metrics that are monitored and
analyzed by cash management executives on a daily, monthly, quarterly, and annual basis.
Significance:
Effective cash management is key for ensuring the financial stability and solvency of a
company. It’s especially important for small businesses who have lesser access to affordable
credit and need to make sure the cash they have coming in will cover their costs.
Cash management is important because just like a ‘no cash situation’ in our day to day
lives can be a nightmare, for a business it can be devastating. Especially for small businesses, it
can lead to a point of no return. It affects the credibility of the business and can lead to them
shutting down. Hence, the most important task for business managers is to manage cash.
Management needs to ensure that there is adequate cash to meet the current obligations
while making sure that there are no idle funds. This is very important as businesses depend on
the recovery of receivables. If a debt turns bad (irrecoverable debt) it can jeopardize the cash
flow. Therefore, cash management is also about being cautious and making enough provision
for contingencies like bad debts, economic slowdown, etc.
Functions:
In an ideal scenario, an organization should be able to match its cash inflows to its cash
outflows. Cash inflows majorly include account receivables and cash outflows majorly include
account payables.
Practically speaking, while cash outflows such as payment to suppliers, operational
expenses, and payment to regulators are more or less certain, cash inflows can be tricky as well.
so the functions of cash management can be explained as follows:
1. Inventory management. Higher stock in hand means trapped sales and trapped sales
means less liquidity. Hence, an organization must aim at faster stock out to ensure
movement of cash.
2. Receivables management. An organization raises invoices for its sales. In these cases, the
credit period for receiving the cash can range between 30 – 90 days. Here, the
organization has recorded the sales but has not yet received cash for the transactions. So
the cash management function will ensure faster recovery of receivables to avoid a cash
crunch. If the average time for recovery is shorter, the organization will have enough cash
in hand to make its payments. Timely payments ensure lesser costs (interests, penalties)
to the organization.
Receivables management also includes a robust mechanism for follow-ups. This will
ensure faster recovery and it will also assist the business to predict bad debts and
unforeseen situations.
3. Payables Management. While receivables management is one of the primary areas in the
cash management function, payables management is also important. Payables arise when
the organization has made purchases on credit and needs to make payments for the same
within a fixed time.
4. Cash-management. An organization can take short-term credit from banks and financial
institutions. However, these credit facilities come at a cost and therefore, an organization
must ensure that they maintain a good liquidity position; this will help in timely
repayments of debts.
5. Forecasting. While planning investments, the managers need to be very careful as they
need to plan for future contingencies and also ensure profitability. For this, they must use
efficient forecasting and management tools. When the cash inflows and outflows are
efficiently managed it gives the firm good liquidity.
6. Short-term investments. Avoiding cash crunch, insolvency and ensuring financial
stability are the main criteria of cash management. But it is equally important to invest
the surplus cash in hand wisely. Despite being a liquid asset, idle cash does not generate
any returns. While investing in short-term investments an organization must ensure
liquidity and optimum returns. Therefore, this decision needs to be taken with prudence.
Here, the quantum/amount of investment needs to be calculated and decided carefully.
This caution is necessary because an organization cannot invest all the available funds.
Businesses need to reserve cash for contingencies (cash in hand) too.
 7. Other functions. Cash management also includes monitoring the bank accounts,
managing electronic banking, pooling and netting of assets, etc. So the cash management
for treasury can also be a core function. Although for large corporates this function is
managed by software, small businesses have to monitor it manually and ensure liquidity
at all times. To add, large businesses have access to credit facilities at competitive rates.
For small businesses that access is not available. Therefore, cash management is vital for
them. However, even large corporations need to monitor their systems time and again to
avoid a situation of bankruptcy.

C. Receivable Management
Definition:
Account Receivables Management or also known as Managing Accounts Receivables
refers to the set of policies, procedures, and practices employed by a company with respect to
managing sales offered on credit.
Receivable Management means collecting the payments due for Sales in a timely manner.
When we sell any services, products or solutions to our clients or customers, they owe us the
money. Collecting that money is called Receivables Management.
Significance:
• The bloodline of any business organization is the cash flow. Therefore, a badly managed
receivables can break the company or business that is why receivable management is
important.
• Efficient receivables management can lead to good sales growth, healthy cash flows,
profitability, and stable operating cycles.
• Companies with lack of profit can survive, but a lack of cash flow will be fatal. Also, most
of the companies that have cash flow problems go bankrupt. Again, in this kind of situation,
receivable management is very significant.
• Working Capital is one of the costliest forms of capital. One of the ways of calculating
working capital requirements can be defined as the difference between Sales and
Receivables. Bad collections can mean higher working capital requirements. Which means
higher interest costs for the company.
• A reliable and predictable Receivables will ensure steady cash flow management of the
organization. Amounts receivables with no due dates are useless.
Function:
The whole purpose or objective of Receivables Management is to keep the inflow of cash
healthy and in order to achieve that, we need cash. The objectives of receivable management are
namely:
• Maintain a healthy cash flow for the company, so that it can pay our creditors.
• It helps you keep track of who owes you money and for how long it has been owed.
 • A working process and mechanism for managing payment follow-ups and timely
collection.
• It prevents overdue payment or non-payment of the pending amounts of the customers.

D. Inventory Management
Definition:
Inventory management this is the process of ordering, storing, and using a company's
inventory. This management includes aspects such as controlling and overseeing purchases from
suppliers as well as customers maintaining the storage of stock, controlling the amount of product
for sale, and order fulfillment. These also include the management of raw materials, components,
and finished products, as well as warehousing and processing such items.
Some firms like financial services firms do not have physical inventory and so must rely
on service process management. In order to achieve these balances, firms have developed two
major methods for inventory management: just-in-time (JIT) and materials requirement planning
(MRP). Just-In-Time (JIT) is an inventory management strategy that aligns raw-material orders
from suppliers directly with production schedules. It contrast the principle of just-in-case wherein
the entity produce or purchase inventory in large amount so that if demand is already rising, the
entity can sell more products at the same time. Another inventory management is called Materials
Requirement Planning (MRP) which means a system for calculating the materials and components
needed to manufacture a product. It consists of three primary steps: taking inventory of the
materials and components on hand, identifying which additional ones are needed and then
scheduling their production or purchase. Unlike in Just-In-Time which is considering the orders
first before producing the product, Materials Requirement Planning considers the production of
finished goods based on forecast requirements.
The following are some of the inventory accounting methods:
• First In, First Out Method (FIFO) Under the FIFO method, the first items purchased by a
business will be considered the first to be sold, regardless of the order in which the items
are actually sold.
• Last In, First Out Method (LIFO) This is opposite to the FIFO method above. Under LIFO,
the most recent costs of products purchased (or manufactured) are the first costs to be
removed from inventory and matched with the sales revenues reported on the income
statement. This means that the oldest costs remain in inventory.
• Weighted Average Method This inventory valuation is used when a business has a lot of
inventories that are similar to one another.
• Specific Identification Method This costing method is used when the inventories sold
cannot be interchanged with one another or where the costs cannot be applied across a
number of similar products. This method is normally used by businesses retailing high-
value items such as jewelry or vehicles
Significance:
Inventory management is a key component of cost of goods sold and thus is a key driver
of profit, total assets, and tax liability.
The importance of Inventory management for any goods-based business is that the value
of inventory cannot be overstated, which is why inventory management benefits your operational
efficiency and longevity. Concerning product perspective, the importance of inventory
management lies in understanding what stock you have on hand, where it is in your warehouse and
how it’s coming in and out.
Function:
The main function of inventory management is to determine the sufficient amount and type
of input products, products in process and finished products, facilitating production and sales
operations and minimizing costs by keeping them at an optimal level. Just like in Just-in-Time and
Materials Requirement Planning, they serve as a guide or requirement in producing a certain
product at a minimum level to lessen the cost. These are other functions of effective Inventory
Management:
• Improved Accuracy of Inventory Orders. Accuracy of product orders, status, and tracking
are critical to good inventory management. An effective fulfillment partner will have real-
time software and systems in place to make sure no product is left untracked throughout
the fulfillment process.
• Organized Warehouse. A good inventory management strategy leads to an organized
fulfillment center. An organized warehouse results in more efficient present and future
fulfillment plans. This also includes cost-savings and improved product fulfillment for
businesses utilizing the warehouse for managing inventory.
• Increased Efficiency and Productivity. With proper inventory management in place, less
time and resources are spent invested in managing inventory and can be allocated to other
areas. Technology is often used to speed up tracking and fulfillment operations, ensuring
inventory records are accurate.
• Save Time and Money. Due to improved ordering accuracy, efficiency, and product flow,
good inventory management results in saved time and money.
• Repeat Customers. Effective inventory management and control protects from incorrect or
damaged goods being shipped to customers. This helps improve customer experience,
protect from issues such as refunds, and achieve more repeat buyers

E. Economic Order Quantity

Definition:
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to
minimize inventory costs such as holding costs, shortage costs, and order costs. This production-
scheduling model was developed in 1913 by Ford W. Harris and has been refined over time. The
formula assumes that demand, ordering, and holding costs all remain constant.
Significance:
The EOQ provides a model for calculating the appropriate reorder point and the optimal
reorder quantity to ensure the instantaneous replenishment of inventory with no shortages. It can
be a valuable tool for small business owners who need to make decisions about how much
inventory to keep on hand, how many items to order each time, and how often to reorder to incur
the lowest possible costs.
The goal of the EOQ formula is to identify the optimal number of product units to order.
If achieved, a company can minimize its costs for buying, delivery, and storing units. The EOQ
formula can be modified to determine different production levels or order intervals, and
corporations with large supply chains and high variable costs use an algorithm in their computer
software to determine EOQ.
EOQ is an important cash flow tool. The formula can help a company control the amount
of cash tied up in the inventory balance. For many companies, inventory is its largest asset other
than its human resources, and these businesses must carry sufficient inventory to meet the needs
of customers. If EOQ can help minimize the level of inventory, the cash savings can be used for
some other business purpose or investment.
The EOQ formula determines a company's inventory reorder point. When inventory falls
to a certain level, the EOQ formula, if applied to business processes, triggers the need to place an
order for more units. By determining a reorder point, the business avoids running out of inventory
and can continue to fill customer orders. If the company runs out of inventory, there is a shortage
cost, which is the revenue lost because the company has insufficient inventory to fill an order. An
inventory shortage may also mean the company loses the customer or the client will order less in
the future.
Function:
The primary function of Economic Order Quantity is to set point designed to help
companies minimize the cost of ordering and holding inventory. The cost of ordering inventory
falls with the increase in ordering volume due to purchasing on economies of scale. However, as
the size of inventory grows, the cost of holding the inventory rises. EOQ is the exact point that
minimizes both of these inversely related costs.
Economic Order Quantity also takes into account the timing of reordering, the cost incurred
to place an order, and the cost to store merchandise. If a company is constantly placing small orders
to maintain a specific inventory level, the ordering costs are higher, and there is a need for
additional storage space.
the EOQ is used as part of a continuous review inventory system in which the level of
inventory is monitored at all times and a fixed quantity is ordered each time the inventory level
reaches a specific reorder point.
 II. Enumerate and Explain Inventory Control Systems

Inventory Control System

An inventory control system is a system the encompasses all aspects of managing of
company's inventory tasks including the following; purchasing, shipping, receiving, tracking,
warehousing and storage, turnover, and reordering. While there is some debate about the
differences between inventory management and inventory control, the truth is that a good
inventory control system does it all by taking a holistic approach to inventory and empowering
organizations to utilize lean practices to optimize productivity and efficiency along the supply
chain while having the right inventory at the right locations to meet customer expectations.
There are two different types of inventory control systems available today: perpetual
inventory systems and periodic inventory systems. Within those systems, two main types of
inventory management systems – barcode systems and radio frequency identification (RFID)
systems – used to support the overall inventory control process:

Types of Inventory Control Systems:

1. Perpetual Inventory System. is a method of inventory management that records real-
time transactions of received or sold stock. This type of inventory control system works
best when used in conjunction with warehouse inventory database of inventory quantities
and bin locations updated in real time by warehouse workers using barcode scanners.
Inventory management apps are perpetual inventory systems.

Advantages of using Perpetual Inventory System includes:

• Real-Time Updates- continuous stock tracking provides a firm with the ability to find out
the inventory items that are running low at the right time.
• More Informed Forecasting- perpetual inventory system allows you to understand the
buying patterns of customers.
• Facilitates Financial Statements- The value of the inventory is a component of the financial
statements. A perpetual inventory system avoids the delay in the preparation of financial
statements as the count of the stock is readily available. So, this system avoids the long and
costly process of physically counting the inventory levels.

Disadvantages of using Perpetual Inventory System includes:

• Expensive Technique- The technology necessary for the system such as barcodes, scanner,
computer software, etc. to work using perpetual inventory system can be a huge expense.
 • Breakage and Spoilage are not Accounted for- The perpetual inventory system uses
purchases and sales to update inventory levels. If some items, after purchasing and storing
them break down or get spoiled, it won’t come to the notice of the management unless a
physical count is done.

2. Periodic Inventory System. is a form of inventory valuation where the inventory account
is updated at the end of an accounting period rather than after every sale and purchase. The
method allows a business to track its beginning inventory and ending inventory within an
accounting period.

Advantages of using Periodic Inventory System includes:

• It is applicable for all business organizations large or small dealing with specific or a
variety of goods.
• Since stock taking is done at the end of a period under this system the normal activities of
the business are not hampered.

Disadvantages of using Periodic Inventory System includes:

• Under this system, the stock control device is very weak. Their employees get a chance to
adopt corruption.
• Under this system chance of fraud and forgery lies, because here continuous control over
merchandise is absent.
• The act of counting merchandise stock is to be completed hurriedly due to a shortage of
time.

Types of Inventory Management Systems within Inventory Control Systems:

1. Barcode System
Inventory management systems makes use of barcode technology which are more
accurate and efficient than those using manual processes. When the barcode system is used as
part of an overall inventory control system, the inventory level automatically updates when
workers scan them with a barcode scanner or mobile device. The following are only some of
the benefits of using barcoding in your inventory management processes:
• Accurate records of all inventory transactions
• Eliminating time-consuming data errors that occur frequently with manual or paper
systems
• Eliminating manual data entry mistakes
• Ease and speed of scanning
• Updates on-hand inventory automatically
 • Record transaction histories and easily determine minimum levels and reorder
quantities
• Streamline documentation and reporting
• Rapid return on investment (ROI)
• Facilitate the movement of inventory within warehouses and between multiple
locations and from receiving to picking, packing, and shipping

2. Radio Frequency Identification (RFID) System

Radio frequency identification (RFID) inventory systems use active and passive
technology to manage inventory movements. Active RFID technology uses fixed tag readers
throughout the warehouse; RFID tags pass the reader, and the movement is recorded in the
inventory management software. For this reason, active systems work best for organizations
that require real-time inventory tracking or where inventory security has been an issue. Passive
RFID technology, on the other hand, requires the use of handheld readers to monitor inventory
movement. When a tag is read, the data is recorded by the inventory management software.
RFID technology has a reading range of approximately 40 feet with passive technology and
300 feet with active technology.

RFID inventory management systems have some associated challenges. First, RFID
tags are far more expensive than barcode labels; thus, they typically are used for higher value
goods. RFID tags also have been known to have interference issues, especially when tags are
used in environments with a lot of metal or liquids. It also costs a great deal to transition to
RFID equipment, and your suppliers, customers, and transportation companies need to have
the required equipment as well. Additionally, RFID tags carry more data than barcode labels,
which means your system and servers can become bogged down with too much information.

When choosing an inventory control system for your organization, you first should
decide whether a perpetual inventory system or periodic inventory system is best suited to your
needs. Then, choose a barcode system or RFID system to use in conjunction with your
inventory control system for a complete solution that will enable you to have visibility into
your inventory for improved accuracy in scanning, tracking, recording, and reporting inventory
movement.
 DIVISION OF TASKS
TOPIC
Working Capital Management
Cash Management
Receivable Management
Inventory Management
Economic Order Quantity
Inventory Control System
Assigned Member
• Mariano, Abegail
• Mariano, Jhiezel
• Dalagan, Alaina
• Noblejas, Erika
• Acierto, Jhon Reymark
• Alabata, Jharzel
• Licudine, Paul John
• Macabata, Jess-Cyr
• Beltran, Millet
• Gabion, Marafe
• Mariano, Jhiezel
• Gabion, Marafe
• Alabata, Jharzel
References:
A. Working Capital Management:

Hawley, J. (2020). The Importance of Working Capital Management. Investopedia. Retrieved

from: https://www.investopedia.com/ask/answers/100715/why-working-capital-management-
important-company.asp

Tuovila, A. (2019). Working Capital Management. Investopedia. Retrieved from:

https://www.investopedia.com/terms/w/workingcapitalmanagement.asp

(2018). Role of Working Capital Management in Business. Finextra. Retrieved from:

http://finextra.com/blogposting/15015/role-of-working-capital-management-in-business-success

B. Cash Management

Cash Management. Corporate Finance Institute. Retrieved from:

https://corporatefinanceinstitute.com/resources/knowledge/finance/cash-management/

Kenton, W, (2019). Cash Management. Investopedia. Retrieved from:

https://www.investopedia.com/terms/c/cash-management.asp

Prachi, M. (2019). Cash Management. The Investors Book. Retrieved from:

https://theinvestorsbook.com/cash-management.html

C. Receivable Management

Parekh, L. (2019). The Definitive Guide to Receivable Management. Enjay World. Retrieved
from: https://www.enjayworld.com/blog/definitive-guide-to-receivable-management/?fbclid=
IwAR1Ql0k1HIyVoR-YmNHdWI58ujnp4QlpBYoOkENvta34amMeG5G6wTp8sXI

Account Receivables Management. How the Market Works. Retrieved from:

https://education.howthemarketworks.com/account-receivables-management/

D. Inventory Management

Hayes, A. (2019). Inventory Management. Investopedia. Retrieved from:

https://www.investopedia.com/terms/i/inventory-management.asp

Barton, C. (2020). Just in Time (JIT). Investopedia. Retrieved from:

https://www.investopedia.com/terms/j/jit.asp

Kenton, W. (2019). Material Requirements Planning (MRP) Investopedia. Retrieved from:

https://www.investopedia.com/terms/m/mrp.asp
 E. Economic Order Quantity

Economic Order Quantity (EOQ). Accounting Simplified. Retrieved from: https://accounting-

simplified.com/management/inventory/economic-order-quantity/?fbclid=
IwAR355qP5JRYKRwdp8QVvZB33uNRs39lDyqLmCwFPPuHBpW4ruoliuyU2WJw

What is Economic Order Quantity (EOQ). My Accounting Course. Retrieved from:

https://www.myaccountingcourse.com/accounting-dictionary/economic-order-quantity?
fbclid=IwAR2941ZPK5CkkbP8bj7xrH40WIaK04jCJ93oQFutLkXcN6Ggo85_-sSKEyQ

Economic Order Quantity (EOQ). Inc. Retrieved from:

https://www.inc.com/encyclopedia/economic-order-quantity-eoq.html?fbclid=
IwAR2PyWpngDRje36lidnDUNd1Y3ofxHgdR_lglx3NJ2hvCxoJa9VluUUiXVY

F. Inventory Control System

Pointus, N. (2020). 4 Types of Inventory Control Systems: Perpetual vs. Periodic Inventory
Control and the Inventory Management Systems That Support Them. Camcode. Retrieved from:
https://www.camcode.com/asset-tags/inventory-control-systems-types/

Advantages and Disadvantages of Perpetual Inventory System. Efinance Management. Retrieved

from: https://efinancemanagement.com/financial-accounting/advantages-and-disadvantages-of-
perpetual-inventory-system

Periodic Inventory System: Advantages and Disadvantages. Iedunote. Retrieved from:

https://www.iedunote.com/periodic-inventory-system