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INTERNATIONAL CONSULTING AND ENGINEERING SERVICES
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INTERNATIONAL CONSULTING AND ENGINEERING SERVICES
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| Roaring Brook Consultants, Inc. |
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REVALUATION OF PRODUCTION STOCKSThe importance of an appropriate level of production stocks is often overlooked considering that it greatly influences the liquidity and therefore the profitability of the entire production facility. |
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A stockroom with an excess of slowly moving materials, or worse, with obsolete materials, generates an economic drag that can only negatively influence the liquidity of the firm. This situation usually results from a disconnection between needs of the production control systems and the systems that control the reordering and delivery of production stocks. In fact, when uncertainty at the time of reordering exists, there is often a fear of shortage of stocks that might slow or stop production. Finally, one should not underestimate the impact of semi-finished goods stores that can sometimes be forgotten in future production planning and that continue to consume economic resources. These problems can be cured with a detailed inventory of all of the production stores and a global revision of acquisition procedures, balancing them with actual production needs. This can lead to a progressive redeployment of stocks with the possibility of reaching an appropriate turnover level within a reasonable time. |
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Keith T. Kallberg, P.E., General Manager Roaring Brook Consultants, Inc. 15 Sewall Road South Berwick, ME 03908 Toll Free: 877-722-2643 Fax: 207-384-5383 |
