Question

You have recently been hired as the operations manager by a small, but growing distributor for industrial products. After your first few months on the job you have determined that the inventory turnover ratio for some of your strategically important products has fallen from its typical ratio of 6 down to 2. As you learned in your ID class, this would be considered: Group of answer choices Not a problem because the inventory turnover is still above 1.0. Not a problem because the inventory turnover ratio is not important for distributors. Not a problem because a lower inventory ratio suggests the company is selling more of the product. An important issue to address because the new ratio suggests the product sales of these strategically important products has slowed significantly.

Answer 1

An important issue to address because the new ratio suggests the product sales of these strategically important products has slowed significantly.

Step-by-step explanation:

Since in the question it is mentioned that the inventory turnover ratio would be decreased from 6 to 2 so here this means that the new ratio would be significant for that products who has fall significantly as there is a more inventory as compared with the sales of the company

Also the inventory turnover ratio represents the problem that show the fall in the sales & overstocking