It is just as bad to have too much inventory on hand as it is to have too little.

Question

Quizplus · Accepted Answer

Having too much inventory can lead to additional costs such as storage, maintenance, and potential obsolescence. It can also tie up capital that could be used for other business purposes. On the other hand, having too little inventory can lead to lost sales, dissatisfied customers, and missed opportunities. Maintaining an appropriate balance of inventory is crucial for efficient and effective operations.

It Is Just as Bad to Have Too Much Inventory