Agroindustrial project analysi

196 AGROINDUSTRIAL PROJECT ANALYSISInventory ManagementWhat will be the best storage capacities for raw materials andfinished goods?El How quickly must the product be processed?O How does the processing affect its storability?O Can the product be semniprocessed to reduce the investment forthe inventory of finished goods and extend the plant's use ofits capacity?O What are the comparative spatial and qualitative requirementsfor the inventory of the raw material and the finishedgoods?O Is there adequate inventory capacity for processing suppliesand equipment repair parts?Are the physical facilities adequate?E What are the potential quantitative and qualitative losses inthe inventories of raw material and finished goods?El What are the economic costs and benefits of adjusting facilitiesfor inventory handling and storage to reduce these losses?E Are the storage facilities effectively located relative to suppliersof raw material and distributors of finished goods?Have the requirements for working capital and the inventory pricerisks been adequately analyzed?O What are the working capital needs for seasonal procurementof the raw material?E Is it possible to hedge against price risks on an existing futuresmarket?E What are the advantages and disadvantages of buying rawmaterials from a wholesaler throughout the year rather thanstockpiling them at harvest time?El Is it possible to achieve price protection for inventory throughadvance contracts?