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What can poor inventory management lead to?
ADissatisfied customers, financial trouble, and bankruptcy
BHigher product quality and more efficient operations
CLower shipping costs and shorter production runs
DFaster machine changeovers and smaller batches
Answer & Solution
Correct answer: A. Dissatisfied customers, financial trouble, and bankruptcy
1. Good inventory management enhances product quality, makes operations more efficient, and increases profits.
2. Poor inventory management runs the other way and results in dissatisfied customers.
3. It also causes financial difficulties and can end in bankruptcy.
4. Option B lists the benefits of good management, so it describes the opposite outcome.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 10 "Achieving World-Class Operations Management", section Inventory Management: Not Just Parts_
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