A High Inventory Turnover Might Signal

question 65

Multiple Choice

A high inventory turnover might signal

• A)A problem with old and obsolete inventory.
• B)An overstock of inventory.
• C)Poor inventory management.
• D)Credit terms that are too tight.

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Definitions:

Parts Plant

A facility dedicated to manufacturing components that are used in the assembly of final products.

Manufacturing Cycle

The series of steps or processes involved in the manufacturing of a product, from raw material acquisition to finished product.

Replenishment Cycle

The process and timeline involved in ordering and receiving new stock to replace sold or used inventory in a retail or warehouse setting.

Order Fulfillment

The complete process from point of sale to delivery of a product to the customer, encompassing receiving, processing, packing, shipping, and handling of returns.