1. Choose a local business in the industry in which you would like to own a firm. Visit the business that you choose, and walk about to observe the amounts and types of inventory on display.

Interview the owner or manager. Determine the approximate value of inventory kept on hand. Find out the average time that any single item stays in inventory before it is sold. Also find out the minimum order quantities and delivery times of inventory.

Use this information to estimate the amount of working capital necessary to maintain inventory. Make a report to your class.