A contractor of a fast food giant failed to deliver the expected output of an inventory systems upgrade. This resulted in more than 70 branches closing due to inventory problems. It compromised the sales for the month. What do you think were the potential opportunities opened up to other players in the fast food industry?

Entrepreneurial Opportunities are defined as:

A) situations in which new goods, services, raw materials and organizing methods can be sold at greater than their production cost.

B) new market entry through entrepreneurial action.

C) The entrepreneur's mental processes in deciding whether or not to act on a potential opportunity.

D) a feasibility assessment.

What are some other methods to take advantage of potential arbitrage opportunities in the U.S. Treasury market? Are there ways with derivatives that investors can take advantage of potential arbitrage opportunities?

Please be more specific!

Thanks,

GEP Manufacturing is mulling over a plan to rent a proprietary inventory control system at an annual cost of $4.5 million. The firm predicts its sales will remain relatively stable at $585 million and that its gross profit margin will continue to be 28%. GEP expects that, as a result of the new inventory control system, its average age of inventory will drop from its current level of 83 days to about 46 days. The firm’s required return on investments of similar risk is 12%. Assume a 365-day year.

Calculate GEP’s average inventory investment both (1) currently and (2) assuming it rents the inventory control system.

Use your findings in part (a) to determine the annual savings expected to result from the proposed inventory control system.

Based on your answer to part (b), would you recommend the GEP rent the inventory control system? Explain your recommendation.