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

Question

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Carrying too much inventory can lead to a variety of negative outcomes, including the risk of customers changing their buying habits. When a business has excess inventory, they may offer promotions or discounts to move the products, which can create a different buying experience for customers. This could cause them to shift their purchasing habits and seek out similar deals in the future, making it harder for the business to predict demand and maintain appropriate inventory levels.

One Effect of Carrying Too Much Inventory Is Risk That