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== == From my understanding, excess stock can have several issues. First of all it wastes valuable space which can be used more efficiently running other things. Secondly, excess stock can mean that the company may suffer from wastage, as the stock can depreciate, or if the stock is a food product, it can expire. It would be best to ensure that stock is kept to a sustainable level for any organisation. If there are excess, it can be sold for extra cash. Holding excess stock is a waste, and if sold can contribute to cash if needed. What is important is to have a correct level of stock in a company. Maybe one should practice some Just In Time Systems.
What else can I help you with?
What is optimum stockholding?
Optimum stockholding refers to the ideal balance of inventory that a company should maintain to meet customer demand while minimizing carrying costs. It involves finding the right amount of stock to have on hand to prevent stockouts and meet customer orders efficiently without tying up excess capital in excess inventory. Companies strive to strike a balance between having enough stock to meet demand and avoiding excess holding costs.
What would be the effect if maximum stock level is exceeded?
Exceeding the maximum stock level can lead to increased storage costs, potential product spoilage or obsolescence, and tie up capital that could be used elsewhere. It can also result in stockouts of other items if space is being occupied by excess inventory.
What is reorder level system?
A reorder level system is a method used in inventory management to determine the point at which new inventory should be ordered. It calculates the reorder level by considering factors such as lead time, demand rate, and safety stock to ensure that sufficient stock is available to meet customer demand while minimizing excess inventory. When the current inventory level drops to the reorder level, a new order is triggered to replenish stock.
Why should you limit the amount of salt you eat?
Consuming too much salt can cause high blood pressure, heart disease, edema and kidney stones. Your body also needs more potassium to be able to deal with the excess salt.
Does the large intestine store excess material?
It does not store excess material the rectum does that.
How excess stock is managed in your workplace?
how excess stock is mange in your workplace
What is the Accounting Journal Entry for Excess Inventory Reserve?
you take it in the closing stock .. it means that you have already added with in closing stock .. therefore you are closing stock reduce ... so excess stock entry will be made directly for the purpose of balance sheet. you are give this effect on it stock sheet only..
Meaning of attic stock?
Attic stock is excess construction material held to allow for repairs.
Capital paid in excess of par common stock?
Capital amount paid for excess of par value of common stock is called "Share premium amount" which is also part of capital of business.
The excess of issue price over par of common stock is termed what?
premium
How human body deal with excess glucose?
The human body deals with excess glucose by turning it into glycogen, fatty acids, triglycerides, or energy.
What is an example of overproduction?
Salmon laying more eggs than will hatch
What did farmers do with excess milk that they could not afford to transport?
use it for pesonal use or stock it
What is a stock brokerage?
A stock brokerage is the intermediary between someone selling stock and someone buying it. A stock brokerage is the middle man between stock sellers and stock buyers. They are the ones that 'broker' the deal between the two parties.
What may cause an organisation to end up holading excess stock?
An organization may end up holding excess stock due to inaccurate demand forecasting, leading to overproduction or over-purchasing. Additionally, changes in market trends or consumer preferences can result in unsold inventory. Inefficient supply chain management and lack of visibility into stock levels can also contribute to excess stock accumulation. Lastly, seasonal fluctuations or unexpected disruptions in sales can leave organizations with surplus inventory.
Which situation best illustrate the concept excess demand?
Currently, due to rumors of gun control legislation, there is an excess demand for high capacity magazines. You can see the results of excess demand by searching for high capacity magazines for sale. Every venue that offers them for sale has nothing in stock. Places that do have them in stock are asking extraordinary prices for them. Therefore, the example of excess demand of high capacity magazines illustrates that excess demand causes scarcity of product and inflation of price. Conversely, excess supply will likely cause decreased prices.
What is buffer stock?
stock used in agriculture to stabilise the price commodities. The government purchases excess production for storage, and then sells that storage stock in years of low production. Aimed to stabilise the prices of food.
