The Impact of Copper Prices on Sales and Inventory
Abstract
Copper has a constant impact on sales and inventory, especially in the
world of wire and cable. At Omni Cable, I was able to follow those changes and
see how the company reacts to copper's volatility. Copper constantly fluctuates in
price, as many commodities do. By tracking day-to-day fluctuations business can
adjust their sales accordingly. It is impossible to predict the changes copper will
have overtime because it is affected by a number of outside factors. Through
observation and research it has become apparent that following the changing
prices is essential to creating a business plan in the face of fluctuations.
Implementing a copper reserve has proven to be a way to protect the company's
assets in case of a decline in copper prices. Omni Cable Corporation is a good
example of how their company works with the constant volatility of copper prices
in the industry.