When inventory turnover has been slowing for several quarters in a row:
A) sales are rising faster than inventory
B) customer demand might be increasing
C) the firm may want to decrease its promotion efforts
D) the firm may want to reduce production

Question

Quizplus · Accepted Answer

If inventory turnover has been slowing for several quarters in a row, it means that the company is holding onto its inventory for a longer period of time. This could be an indication of weak demand or overproduction. In this scenario, the best choice is to reduce production to align with customer demand and avoid increased inventory costs.

When Inventory Turnover Has Been Slowing for Several Quarters in a Row