Augusta
VIP Contributor
it is good to always have stocks so as to always deliver to buyers as quickly as possible but overstocking the business can be detrimental to the business.
They are numerous reasons to avoid having too much stocks
Money tied up in inventory
This is one reason to avoid overstocking your business, you would be tying up funds you could have invested elsewhere in a business.
Inventory can go out of fashion
Overstocking the business can bring waste as you might be unlucky that the stock you have might go out of fashion
The stock might spoil
The stock you have might go bad due to long storage and they will be written off as a loss.
They are numerous reasons to avoid having too much stocks
Money tied up in inventory
This is one reason to avoid overstocking your business, you would be tying up funds you could have invested elsewhere in a business.
Inventory can go out of fashion
Overstocking the business can bring waste as you might be unlucky that the stock you have might go out of fashion
The stock might spoil
The stock you have might go bad due to long storage and they will be written off as a loss.
