Inventory is a Necessary Evil

How you See Things Defines Your World, Within Limits

Inventory freezes money that could be working for you, and hides waste. What happens when you look at it as a liability rather than an asset?

This short film, while a bit overly simple, elegantly illustrates what is wrong with treating inventory as an asset in operations, as is done in cost accounting on the balance sheet.

Inventory is  a necessary evil, but it is evil, generating hidden losses and lost opportunities, like a still puddle breeds mosquitos. 

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About the Author

Dan Strongin works with medium to small companies, helping them master the art and science of managing.

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