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Business strategy
Reasons to avoid overstocking the business
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[QUOTE="Augusta, post: 309750, member: 25283"] it is good to always have stocks so as to always deliver to buyers as quickly as possible but overstocking the business can be detrimental to the business. They are numerous reasons to avoid having too much stocks Money tied up in inventory This is one reason to avoid overstocking your business, you would be tying up funds you could have invested elsewhere in a business. Inventory can go out of fashion Overstocking the business can bring waste as you might be unlucky that the stock you have might go out of fashion The stock might spoil The stock you have might go bad due to long storage and they will be written off as a loss. [/QUOTE]
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