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Why is overstocking warehouses not an effective solution for a problem of low availability?

A) It does not speed product time to market.

B) It is an inefficient use of raw materials.

C) It increases sales costs.

D) It increases inventory costs.

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Question ajoutée par Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG
Date de publication: 2016/03/18
MUBARAK INAYTULLA KHAN
par MUBARAK INAYTULLA KHAN , Procurement Manager , UNIT7 CONTRACTING EST. RIYADH.

This is important question in our warehouse management system.  If the stock kept non-moveing, that effect the cost.  So the correct answer is increased the Inventory cost. 

Ghada Eweda
par Ghada Eweda , Medical sales hospital representative , Pfizer pharmaceutical Plc.

Thank you for invitation. Your answer is correct.

Vikas Bachhuka
par Vikas Bachhuka , Sales Manager - Tire, Lubs & Batteries , ALI ALGHANIM & SONS AUTOMOTIVE CO.

The inventory cost will go high. If you overstock a product you are blocking warehousing pace for this product and increasing warehousing cost on those products.

Mohamed Abdulfatah  Elhariri
par Mohamed Abdulfatah Elhariri , Supervisor , SBG

It Increase inventory costs.

Rafi Shajahan
par Rafi Shajahan , Supply Chain Coordinator , QATAR AIRWAYS

overstocking will increase the inventory cost of the company.Proper scheduling about product when it is required  forecasting model to maintained

Sathish Prabhu.V
par Sathish Prabhu.V , Manager - Operations & Process Improvement , Revolution Valves

Absolutely, overstocking will not only increase inventory cost, but also decrease your money flow and may affect your future plans of your business as well

Ahmed Mohamed Ayesh Sarkhi
par Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

wait more details from our experts

 

It increases inventory costs.'''''''''''''''''''''''''''''''''''''''''''''''

It increases inventory costs......................

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Vinod Jetley
par Vinod Jetley , Assistant General Manager , State Bank of India

Agree with Mohamed Elhariri Warehouses Manager

Wasi Rahman Sheikh
par Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG

My answer is ================   It increases inventory costs.

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