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Industry Averages and Financial Ratios Paper


Submitted By millet18
Words 803
Pages 4
Industry Averages and Financial Ratios Paper
Manuelita Blow
Ms. Christine Gordon
University of Phoenix
March 13, 2015

Industry Averages and Financial Ratios Paper
This paper will be discussing Target, a publicly-traded company. This paper will be Locating the SIC code for the company's industry, Finding Targets ratios for the company using the Dun & Bradstreet® Key Business Ratio link in the University Library. This paper will also be assuming that the inventory ratio is based on a traditional inventory system, but globalized markets and the supply chain make it critical to adopt lean principles to create a more efficient system. This paper will also be discussing what a change to a Just- In- Time inventory system would have if adopted by Target and Financial ratios will be calculated and the ratios will be compared with the appropriate industry.

According to "Just In Time Vs Traditional Inventory System." (2014), “Traditional inventory systems, seek to have enough inventory on hand so that production may continue even in the face of unexpected shortages or shipping delays. The ideal goal of JIT (Just in Time) manufacturing is to have precisely the right amount of components or materials on hand at any given moment, with as little idle inventory as possible. In a factory run perfectly according to the JIT model, every component delivered to the factory would go directly from the loading dock to the assembly line”. ("Just In Time Vs Traditional Inventory System.", 2014).
If adopted “JIT manufacturing is extremely sensitive to supply shortages, since one missed shipment of a particular component may be enough to shut down an assembly line until the next shipment arrives. A traditional factory would continue to work under these circumstances, using components from the warehouse until the next shipment”. ("Just In Time Vs Traditional

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