Economics Literary analysis

Cornell Notes
Lecture, reading/chapter/novel/article during class, power point, movies (if need to collect info.)
Topic: Payment Schemes for a two-level consignment stock supply chain system
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-1714544450Essential Question:
00Essential Question:

Questions/Main Ideas: Name: _
Date: _28 October 2018___
Notes:
How the financial situation of a firm affects its inventory ownership The cost of capital and financial constraints affects the inventory levels held by a firm.
The effects of financial constraints on inventory holding Increased financial constraints increases the inventories of a firm.
As such, a firm facing higher financial constraints is likely to have more inventories.
A firm with lower financial constraints is likely to less inventories (Hoberg, Protopappa-Sieke, & Steinker, 2017).
How inventory holding is affected by the cost of capital Higher cost of capital has a weak association with lower inventory level.
This means that the cost of capital has a weak effect on a firm’s inventories.
How cost of capital affect inventories from a single-firm perspective The inventory holding of a firm is slightly affected by the cost of capital o the financing cost of the firm.
How financial constraints affects inventories from a single-firm perspective There is a very intense relationship between the inventories held by a firm and its financial constraints.
Increased financial constraints of a firm hamper inventory management.
A firm with higher financial constraints is also likely to hold more inventories than a firm with less financial constraints.

The effect of customer-supplier relations on inventory ownership from a two-firm perspective Financial positions of a firm play a significant role in influencing the firm’s inventory management.
From a financial perspective, inventory holding between customers and suppliers is less than optimal.
The largest portion of inventories in a supply are held by the customer.
The financial position of a firm can be deliver a lot of financial advantages to the firm.
Summary:
The management of a firm’s working capital is very critical in increasing the firm’s profitability and driving its growth. The financial situation of firm play a critical role in influencing its inventory levels (Hoberg, Protopappa-Sieke, & Steinker, 2017). Improved management practices help companies to reduce their stocks, enhance production set-up processes, and lower raw material inventories. Firms are, therefore, leveraging their financial positions to improve financial advantages and effectively manage their inventories.
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Hoberg, K., Protopappa-Sieke, M., & Steinker, S. (2017). How do financial constraints and financing costs affect inventories? An empirical supply chain perspective. International Journal of Physical Distribution & Logistics Management, 47(6), 516-535.