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this video is over inventory management Im your professor dr. Steven Haggard so inventory is part of current assets and net working capital is current assets minus current liabilities so understanding inventory is important to understanding working capital management so inventory it is dynamic which means constantly changing and what that means is we have to be constantly vigilant or inventory can get out of control and things that cause inventory to change would be both internal and external factors so an internal factor might be a change to your process or a labor strike external factors could be the economic condition or some sort of viral pandemic all of these things can impact the level of inventories at our firms and we must constantly be vigilant to make sure that we have enough inventory to do the job without so much that we are holding too much inventory so what is inventory well we say its an idle stock of physical goods lets start with the word idle idle means its not d