Inventory turned over seven times during the year at Prosser Electronics. Similar electronics retailers have an inventory turnover equal to twelve times per year. What explains Prosser's state of inventory management?

Question

Quizplus · Accepted Answer

Prosser's inventory turnover rate of seven times per year is lower than the industry average of twelve times per year, indicating that Prosser may have too much inventory on hand. This suggests that Prosser needs to increase sales and decrease the amount of inventory on hand to improve their inventory management.

Inventory Turned Over Seven Times During the Year at Prosser