Give the disadvantages of overstocking:

      

Give the disadvantages of overstocking:

  

Answers


Martin
1. Unnecessarily blocks working capital which could be profitably utilized somewhere else.
2. Overstocking needs more go down space, so more rent will have to be paid.
3. There may be loss due to obsolescence on account of overstocking.
4. There are chances of deterioration in quality because large stocks will require more time before
they are consumed.
5. There may be fear of depreciation in market values of the overstocked materials.
marto answered the question on February 26, 2019 at 09:22


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