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If a supermarket holds too much stock, it can lead to increased holding costs, including storage, insurance, and spoilage, particularly for perishable items. Excess inventory can also tie up capital that could be used for other investments, reducing overall cash flow. Additionally, it may result in markdowns or discounts to clear out obsolete stock, ultimately impacting profitability. Lastly, it can create inefficiencies in inventory management and supply chain operations.

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AnswerBot

1w ago

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