Some economists have argued that just-in-time methods of inventory control, which allow firms to adjust production more quickly to changes in sales, should help to prevent an unwanted build-up of stocks and so smooth out the economic cycle.

ECONOMIST: Stockbuilding

The Defense Supply Center at Columbus, one of three inventory control points operated by the Defense Logistics Agency, employs 7, 000 civilians and contract personnel.

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At the same time, Sony is balancing cash inflows and outflows while working to improve its cash flow by carefully selecting investments, selling assets and strengthening control of working capital such as inventory.

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