The shortage or surplus of working capital, both are harmful for the organization especially for poultry industry. So it is important for the assessments of working capital. The following considerations which is necessary for assessing the working capital requirement for a poultry industry:
1. The information of estimated production of poultry business
2. The value of
raw material, labor and overheads for
unit or
sum
of
production
3. Time lag in store of
raw materials of
poultry product
4. Time lag in production process
of
poultry product
5. Stag in the warehouse of
finished product
6. Delivery process of
the
poultry product
7. Collection period from
debtors
8. Credit allowed by suppliers
The main factors of
assessing working capital are
a.
Inventories ofstock
-raw materials
-work in process :and
-finished goods
b.debtors: and
c.cash