Too low an inventory turnover can cause a firm to lose quantity discounts or to be out of stock.

Name: Too low an inventory turnover can cause a firm to lose quantity discounts or to be out of stock.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A too low inventory turnover indicates that a company may have too much inventory on hand, leading to potential overstock and obsolescence issues, rather than losing quantity discounts or being out of stock, which are more directly related to too high inventory turnover or poor inventory management.

Too Low an Inventory Turnover Can Cause a Firm to Lose