implications of poor stock control

• What is a consequence of poor stock control?

  Increased costs
• How does poor stock control lead to increased costs?

  It results in excess stock
• What must be done with money spent on excess stock?

  It must be stored or disposed of
• What is a likely outcome of having excess stock?

  Increased business costs
• What happens to money tied up in stock?

  It cannot be invested elsewhere
• What is a consequence of being unable to meet demand due to poor stock control?

  Loss of customers
• What can result from customers being unhappy with service?

  Damage to business reputation
• How does poor stock control affect customer service?

  It leads to poor customer service
• What is a potential problem with cash flow due to poor stock control?

  Insufficient cash to meet liabilities
• How does money tied up in stock affect cash flow?

  It limits available cash for liabilities
• What indicates cash flow problems in a business?

  Low acid test ratio
• What are the implications of poor stock control on customer service?

  • Increased costs due to excess stock
  • Loss of customers due to unmet demand
  • Damage to business reputation
• What are the financial implications of poor stock control?

  • Money tied up in stock
  • Insufficient cash flow to meet liabilities
  • Increased business costs