1. Provide an example of why a firm may have low annual inventory turns? 2. The

Question

1. Provide an example of why a firm may have low annual inventory turns?

2. The lose of sale and lose of customer, lose of sale, lose of sale and gain of another sale, or customer waiting for inventory is a result of a _______.

3. A process that falls within the UCL and LCL, means that process is in ___________.

4. An example of natural variation, is the ever-so-slight differences in the dimensions of a piece of paper.

True

False

Could you please be kind enough and answer these questions?

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Explanation / Answer

1. A low inventory turnover ratio can occur if the company is maintaining large inventory and there is low sales realized by the organization. Example FMCG store buying large inventory and no having enough sales compared to large inventory.

2. Stock outs.

3. Control limits.

4. False.

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