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? Stock out Costs Management Tools ? Economic order quantity Model ? Just in time Inventory ? ABC Analysis Sources of Working Capital Financing ? Equity and Long term debt ? Trade credit ? Bank loans ? Factoring ? Commercial paper Bank Financing ? Cash Credit / Overdrafts ? Bills Discounting ? Non Funded Limits Non Funded Limits ? Letter of credit ? Guarantees ? No funds provided ? Assume credit risk ? The decision to maintain higher inventories was taken to allow FisherPrice to aggressively support first quarter sales in calendar 1992 and to further improve our quality of customer service. ? FisherPrice , Inc., 1991 Annual Report,