Buy custom Lawrence Sports Working Capital Policy Paper
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| Topic: |
Business
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| Number of pages / Number of words: |
8 / 2118 |
Essay's paper body
According to the simulation, inventory is kept at a minimum because when Lawrence Sports had to replace a shipment, new parts were ordered to fill the replacement order. Lawrence Sports appear to have some agreements, but it appears as though they are not kept. At the risk of not upsetting the company's largest customer, the credit terms are probably relaxed often...
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In two weeks, 100% of the payment is due from Mayo. However, if Mayo does not pay, Lawrence Sports has a tough time paying the suppliers and will delay paying the bill. This is a vicious cycle that may have suppliers leave Lawrence Sports.
Lawrence Sports can try to negotiate a new payment strategy to help reduce such large payments in a short amount of time...
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