A Truck Full of Melons -- Dickeson

If we look just at the "costs" of slow turns we might value the loss of profitability at the current cost of interest on short-term borrowing. For example, if we decreased our average inventories by $100,000 we've saved costs at the rate of, say, 10 percent—$10,000. But we're not bankers; we're entrepreneurs. We must regard that $100,000 released to us at an entrepreneurial rate of return, an opportunity rate. It should not be less than 25 percent. Invest in nothing related to printing that doesn't appear to return the investment in four years or less! And at that it's only 6 percent greater than the present profit leaders.