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Determine the optimum level of stockholding for the company

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Reference no: EM13856241

Salford Engineers Limited, a medium-sized manufacturing company, has discovered that it is holding 180 days' stock while its main competitors are holding only 90 days' stock.

Required

(a) Discuss what you consider to be the most important factors determining the optimum level of stockholding for the company.

(b) What action would you take if you were asked to investigate the reasons for Salford's high level of stock?

Reference no: EM13856241

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