Give two reasons why storing a lot of inventory may be a problem and e

QUESTION

Give two reasons why storing a lot of inventory may be a problem and explains why stores wouldn’t want to keep a lot of product on hand. Give examples.

What will be an ideal response?

ANSWER

Answer: Space: Some products, such as lumber for building houses, take up a lot of room and require a lot of storage space. Climate control: Many food products need to be refrigerated or frozen, so climate control is an issue.
Explanation: Makers of acoustic guitars have to store special woods. Shoe stores have to store shoes. In both cases, there are problems with inventory control. Guitar woods, for instance, may need to be stored in special climate-controlled conditions. Shoe stores have to cover the widest variety of sizes and fashions.