Sandy (sandhika ) Sharan by Sandhika Sharan https://padlet.com/shar1531/27vzvolylqbk Cost implications of poor inventory management en-us 2017-02-03 08:08:00 UTC 2025-12-23 22:54:35 UTC hello@padlet.com https://padletuploads.blob.core.windows.net/prod/134740226/fd0277672e08a90b525d39fa5b79f675/StockList.jpg 1)Poor Customer Service leading to loss of business shar1531 https://padlet.com/shar1531/27vzvolylqbk/wish/151362564 No meeting a balance in customer's supply and demand for medicine can loose clients for the business . Proper inventory management is vital to maximizing operational efficiency and profitability.(Chroncom, 2017)]]> 2017-02-03 08:08:47 UTC https://padlet.com/shar1531/27vzvolylqbk/wish/151362564 2)Loss of Cost Effectiveness shar1531 https://padlet.com/shar1531/27vzvolylqbk/wish/151364567 Bad inventory can be quite costly to your organization. Entrepreneur.com states that if you have too much inventory, it has the potential to be destroyed or damaged over time due to reasons beyond your control. If you have no system to weed out bad inventory, you also may end up with shrinkage (inventory lost to theft) (Chroncom, 2017)]]> 2017-02-03 08:18:35 UTC https://padlet.com/shar1531/27vzvolylqbk/wish/151364567 3) Effect on cash flow shar1531 https://padlet.com/shar1531/27vzvolylqbk/wish/151364915 Inventory levels can have a direct effect on cash flow. To a company with limited cash flow, tying up much needed funds in inventory that is not needed during the current accounting period has severe effects on expenditures. Some types of expenditures, such as marketing expenses, can have a considerable effect on profitability (Chroncom, 2017).]]> 2017-02-03 08:20:04 UTC https://padlet.com/shar1531/27vzvolylqbk/wish/151364915 4)More costs associated with storing and managing inventory shar1531 https://padlet.com/shar1531/27vzvolylqbk/wish/151366778 Another disadvantage of overstocking inventory is warehousing expense -- more inventory requires more labor and space (Chroncom,2017)]]> 2017-02-03 08:30:16 UTC https://padlet.com/shar1531/27vzvolylqbk/wish/151366778 5)Affecting sales figures shar1531 https://padlet.com/shar1531/27vzvolylqbk/wish/151367506
Inventory turnover, or the number of times inventory is sold over a given period, affects profitability. Keeping stocks that are obsolete and have a low turnover slows down sales. Keeping stocks that are having a high demand boosts sales levels (Chroncom,2017).
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