What inventory description is given to goods that are half made or in assembly?
Raw materials
Works in progress
Finished goods
What business outcome is the most likely result of overstocking?
Money becomes less available to invest in other areas of the business
Damage might be done to the reputation of the business
It becomes difficult for a business to meet unexpected orders
Which description describes the type of inventory that is used as an ingredient for a product?
What is the most likely outcome of understocking for a business?
Loss of reputation because of an inability to meet an unexpected order
The waste off large amounts of stored inventory because it has gone out of fashion or spoiled
Higher storage and security charges
What is the best strategy for the survival and success of a business when managing their inventory levels?
Understock to allow money to always be available to spend on parts of the business that need investment.
Overstock so as to be ever ready to meet unexpected customer demands.
To strive to find a balance of inventory for the business.