Question

Which are considered losses associated with poor inventory management

(A) Back orders
(B) Shrinkage
(C) Frequent ordering
(D) All of the above

Answer 1

Poor inventory management can result in back orders, shrinkage, and frequent ordering, which can lead to dissatisfied customers, financial losses, and increased costs.

Step-by-step explanation:

The answer to the question is All of the above. Poor inventory management can lead to various losses, including back orders, shrinkage, and frequent ordering.

Back orders occur when a customer places an order for an item that is out of stock. This can result in dissatisfied customers and lost sales.

Shrinkage refers to the loss of inventory due to theft, damage, or spoilage. Inefficient inventory management can contribute to higher shrinkage rates and financial losses.

Frequent ordering, also known as small or frequent replenishment orders, can increase costs associated with transportation, handling, and order processing. It can also lead to higher inventory carrying costs.