ENTREPRENEURIAL OPERATIONS
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Identify the costs and risks of OVERstocking:
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Customers will not be able to buy what they want
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Staff will be made redundant
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Higher storage costs
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Items could deteriorate with age
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Explanation:
Detailed explanation-1: -What are the effects of overstocking? Overstocking products can lead to increased levels of inventory in store and in warehouse. You risk product being expired or trouble selling later if there is reduced demand.
Detailed explanation-2: -Business cannot fulfil orders on time. Production may stop due to the lack of available materials. It will never be possible to meet unexpected large orders. The business will be viewed as unreliable and its reputation will be damaged.
There is 1 question to complete.