A business would NOT hold more inventory than it requires for which of the following reasons: Potential physical deterioration, or obsolescence, of the inventory. Cash tied up in inventory could be used more productively elsewhere in the business. Risk of theft of the inventory. Lack of warehouse space.

Multiple Select QuestionSelect all that applyWhich inventory issues negatively impact a firm's finances? (pick two answers)Multiple select question.Inventory shortages may cause a customer to seek out a competitor's product for purchase.Excess inventory sitting in a warehouse reduces money that could be invested in some other part of the company.Firms that produce goods just in time to meet sales demand experience backlogs in production and excess inventory.Need help? Review these concept resources.

Which of the following is not affected by decisions about how much inventory to hold?

A high inventory turnover indicates: Group of answer choices a high level of funds tied up in inventory. a low level of funds tied up in inventory. inventory consists of mostly high value products. inventory consists of mostly low value products.

A high inventory turnover may indicateAn efficient use of the investment in inventory.A high risk of stock-outs.A low profit margin.Option 1 and Option 2 are correct.

The perpetual inventory system is often used by smaller businesses that have easy-to-manage inventory and may not have a lot of money or the opportunity to implement computerized systems into their workflow.Group of answer choicesFalseNo answer text provided.No answer text provided.True