COURSE OUTLINE

1. INVENTORY CONSIDERATIONS

A. Inventory characteristics

B. Storage

C. Mix

D. Valuation

E. Warranties

F. Returns

G. Agreements with Suppliers

H. Liens

I. Facilities

J. Insurance

2. ANALYZING INVENTORY

A. Inventory Composition

i. Raw Materials, Work-in-Process, Finished Goods

ii. Fast-moving, Slow-moving, Obsolete, Scrap

iii. Customized, Standardized, Brand Names

iv. Commodities, Warehouse/Distributor Parts, Manufacturing, High Tech/Fashion

B. Client Accounting Systems

i. Specific ID

ii. Average Cost

iii. FIFO/LIFO

C. Inventory Performance in Liquidation

D. Ineligibles

E. Testing

i. Existence

ii. Ownership

iii. Quantity

iv. Quality

v. Value

F. Turnover

G. Additional Costing Systems

i. Gross Profit

ii. Retail

H. Appraisals

I. Reserves

J. Advance Rates

3. MONITORING INVENTORY

A. Financial Statements

B. Sales

C. Purchases

D. Inventory On-hand

E. Red Flags

i. Changes in Supplier and Customer Relationships

ii. Backlogs

iii. Changes in Market Conditions

iv. Changes in Gross Margin

v. Increased Discounts

4. RESTRUCTURING

A. Deteriorating Scenarios

B. Restructuring Methods

i. Increase Advance Rate

ii. Advance on Other Assets

C. Liquidations