BLOW THROUGH INVENTORY

1 year ago
2

Inventory costs money and requires careful monitoring. During a recession, when inventory turnover may be slow, inventory can become even more costly, since it becomes more susceptible to obsolescence, theft, damage, and higher costs for longer storage.
 
While inventory managers may be predisposed to downsizing inventory to combat these costs, it's important to maintain a balance between converting inventory to cash and retaining the ability to fulfill orders. Stockouts mean lost revenue and can impair customer relationships. Downsize the less popular, less profitable, and more easily replaced inventory to increase cash flow while also evaluating the supply chain and considering stocking up on best sellers.

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