Help on business question?

Question

12. How can the firm reduce its investments in inventories? What costs might the firm incur from a policy of a very low inventory investment?
14. Do inventories represent an investment in the same sense as fixed assets?

Answer 1

A meaningful answer to your questions requires some additional information. What is the business? Is it manufacturing, service or governmental? Inventory for a restaurant or auto manufacturer is much different than for a doctor's office.