Operating Profit =
Sales Revenue - Operating Expenses

             Changes in inventory levels will affect both terms   
           on the right side of this equation. Sales revenue will
           increase if inventories are better planned and      
           customers are satisfied. Inventory carrying cost will
           be lower as inventory levels decline reducing
           operating expenses.

Phone:  416.477.2IMS (2467)
Email:  dennis@imsconsulting.ca