Low inventory turnover ratio

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Reference no: EM131027207

Which of the following statements are true?

a. In general, it's better to have a low inventory turnover ratio; however, having inventory turnover too low could lead to outages and potential loss of customers.

b. In general, it's better to have a high inventory turnover ratio; however, having inventory turnover too high could lead to outages and potential loss of customers.

c. Having inventory turnover too high could lead to outages and potential loss of customers, so in general, it is better to have a low inventory ratio overall.

d. Having inventory turnover too low could lead to outages and potential loss of customers, so in general, it is better to have a high inventory ratio overall.

e. A firm with a low inventory turnover ratio is using its inventory efficiently.

Reference no: EM131027207

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