1. How does the term “Best Practices” aid the future operation practitioner?

In this question, let us first define the meaning of the “best practices”. When we say best
practices it means finding and using the best ways of working to achieve your business objectives. It also
involves keeping up to date with the ways that successful businesses operate in your sector and others
and measuring your ways of working against those used by the market leaders. Based in my own
understanding after having some research about the term best practices all I can say is that, this term
aid the future operation practitioner simply because, as your business grows, you will need to change
and adapt to new circumstances. You can experiment with different ways of working to see which suits
your business best. But this approach is inefficient and may lead you to make inappropriate decisions. It
is just common sense to use best practices in whatever you are trying to accomplish. Just bear in your
mind that “Best practices” is simply what it says, the best practice. That is why it is always a good idea
to be aware of what the best practices are for what you are trying to achieve. It is a framework for
success and the minimization of failure. Evaluating how your operations compare with the most
effective and profitable enterprises, and then using their most successful elements the "best practice" in
your own business, can make a big difference. That’s how the term best practices aid the future
operation practitioner.

2.How does the GAAP Perspective affect the Inventory Management?

When we say GAAP Perspective,it is the abbreviation of Generally Accepted Accounting

Principles. GAAP simply denotes to a collection of broad concepts and detailed practices that
represent best accounting practices as it is accepted at a given time, and often within a specific
industry.GAAP Perspective affect the Inventory Management in a way that without GAAP,
organizations wouldn’t be able to provide uniform, accurate financial data to their investors,
stakeholders and creditors.Because the purpose of GAAP is to create a uniform standard for
financial reporting. For example, GAAP states that all inventory reserves be stated and valued
using either the cost or the market value method, whichever is lower. An inventory reserve is
money that is taken out of earnings for the purpose of paying cash or non-cash anticipated
future costs associated with inventory.That is why GAAP is always connected with Inventory
Management.Thus Inventory reserves are monies used to pay for the future costs associated
with inventory. Under GAAP, inventory reserves are accounted for by using the lower of the
market value method or the cost method. As GAAP is constantly changing due to regulations
and developing practices in business, these processes can change over time, and therefore a
significant amount of judgment is made by the accountant preparing the financial
statements.That’s how GAAP Perspetive affect the Inventory Management.