Mahindra Finance Interview Questions and Answers

Operating on high or low inventory can have significant impacts on supply chain performance.

• High inventory can lead to increased storage costs and obsolescence, while low inventory can result in stockouts and lost sales.

• Operating on high inventory can also tie up capital that could be used for other investments, while low inventory can lead to increased ordering and transportation costs.

• The optimal inventory level depends on factors such as demand variability, lead times, and...read more

Inventory plays a crucial role in supply chain management by ensuring the availability of products, optimizing costs, and minimizing disruptions.

• Inventory helps in meeting customer demand by ensuring product availability.

• It acts as a buffer between supply and demand, reducing the risk of stockouts.

• Inventory management helps in optimizing costs by balancing holding costs and ordering costs.

• It enables efficient production planning and scheduling.

• Inventory can be used strategica...read more

The optimum working capital ratio for steel industry varies based on factors such as production cycle, inventory turnover, and payment terms.

• Factors such as production cycle, inventory turnover, and payment terms affect the working capital ratio.

• The ratio should be high enough to cover operational expenses and maintain liquidity, but not so high that it ties up too much capital.

• A common benchmark for the steel industry is a working capital ratio of 1.2 to 1.5.

• However, this ca...read more

Optimizing working capital can be achieved through various steps such as improving cash flow, reducing inventory levels, and optimizing payment terms.

• Improve cash flow by implementing efficient cash management practices

• Reduce inventory levels by implementing just-in-time inventory management

• Optimize payment terms by negotiating favorable terms with suppliers

• Implement effective credit management practices to minimize bad debts

• Streamline accounts receivable and accounts payable...read more

My experience in streamlining processes, reducing costs, and improving communication will benefit the supply chain division.

• I have successfully implemented lean principles in my previous role, resulting in a 20% reduction in lead time.

• I have experience in negotiating with suppliers to reduce costs while maintaining quality standards.

• I have implemented a communication plan that improved collaboration between departments and reduced errors.

• I have experience in using data analyt...read more