The view regarding this inventory policy by GANT is that there'll be a reduction in the revenue of the company.
<h3>How to illustrate the information?</h3>
It should be noted that inventory policies are used to determine the best way that a product can flow through a supply chain.
Here, are are informed that GANT supplies clothes to Pyramid and since Pyramid employs very few staff in a move to cut down costs of operations, it'll lead to the reduction in revenue
The assumptions that will guide in determining the adequate level of inventory include the demand and level of stocks.
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Net working capital = total current assets - total current liabilities
Net working capital for 2015 = 1,205 -965 = 240
Net working capital in 2015 = $240
Net working capital for 2016 = 1,420-1,095 = 325
Net working capital in 2016 = $325
Change in working capital for 2016 = Net working capital in 2016 - Net working capital in 2015
Change in working capital for 2016 = 325 -240 = 85
Change in working capital for 2016 = $85