Managing Working Capital

A new computer system allows your firm to more accurately monitor inventory and anticipate future inventory shortfalls. As a result, the firm feels more able to pare down its inventory levels. What effect will the new system have on working capital and on the cash conversion cycle?

I think that the working capital will be affected greatly. I am really not for sure how accurate the system will be. :confused:

A new computer system?

Would you please tell us what is the name
Of the new computer system ?

What are its main advantages ?

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