Discuss the two cash management

Question

Read the case of Cytec Industries and answer the following questions

1. Define the term working capital management and explain its two main objectives and their conflict.

2. From the case study, discuss the causes of Cytec working capital problems and their implications.

3. Discuss the two stock management models (JIT and EOQ) and how they would be beneficial to Cytec Industries

4. Discuss the two debtor management policies (Tight and Liberal) and how they would be beneficial to Cytec Industries

5. Discuss the two cash management models (Baumol and Miller-Orr) and how they would be beneficial to Cytec Industries

 

Answer 1

Read and review the case of Cytec Industries and respond to the given questions in a word paper using Times New Roman font. 1) Define the word working capital management and describe its two major objectives and their conflict. 2) From the case study, illustrate the causes of the Cytec working capital problems and their implications. 3) Illustrate the two stock management models (JIT and EOQ) and explain how they would be beneficial to the Cytec Industries. 4) Illustrate the two debtor management policies (that is, Tight and Liberal) and how they would be advantageous to Cytec Industries. 5) Illustrate the two cash management models (that is, Baumol and Miller-Orr) and explain how they would be advantageous to the Cytec Industries.