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Some important considerations I would have regarding the amount of inventory a business I own or work at has available to sell is the demand
Some important considerations I would have regarding the amount of inventory a business I own or work at has available to sell is the demand for products, delivery times from suppliers, and the storage costs. Understanding what products are in demand and what sells out faster during certain seasons and times of the year will help the people in charge of inventory grasp what quantities should be held. Familiarizing the shipping times, or how long it takes to receive a product is also important because you want to make sure you order at the right time so your shelves are not empty. The effect of low inventory will affect will be stockpots. This is not good for any business because it causes lost sales and dissatisfied customers. On the other hand excess inventory is also not great. It increases storage costs, may require discounts to get rid of it which will affect profit margins, and depending on the product, it may become obsolete. I would choose the accounting manager to assist with inventory. They have the financial expertise, understand cost implications, and can analyze turnover ratios.
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