One negative effect of carrying too much inventory is risk that customers will change their buying habits.

Name: One negative effect of carrying too much inventory is risk that customers will change their buying habits.
Brand: Quizplus
Rating: 4.8 (41 reviews)

Question

Quizplus · Accepted Answer

If customers change their buying habits, the inventory may become obsolete or outdated, leading to losses for the business. Additionally, if the inventory is not moving, it ties up capital and storage space, preventing the business from investing in more profitable opportunities.

One Negative Effect of Carrying Too Much Inventory Is Risk