What occurs when inventory turnover ratios are too high?
A) Inventory sits in storage a very long time.
B) Customers become frustrated by items being out of stock.
C) Too much inventory arrives too quickly.
D) Sales increase.

Question

Quizplus · Accepted Answer

When inventory turnover ratios are too high, it means that the inventory is not staying in storage for long and is being sold out quickly. This could lead to situations where customers are frustrated by items being out of stock frequently, resulting in lost sales or lower customer satisfaction.

What Occurs When Inventory Turnover Ratios Are Too High